Even if economic conditions would normally justify lower rates, concerns about inflation, investor sentiment, and higher government borrowing costs may force the central bank to pause or slow the pace of cuts.<\/p>\n
For mortgage professionals, this means rate relief could be less predictable and more dependent on fiscal decisions coming out of Ottawa.<\/p>\n
Investment, productivity, and the road ahead<\/p>\n
Meanwhile, Marion and other economists have argued that targeted investment, particularly in infrastructure and energy, could help boost Canada\u2019s lagging productivity. \u201cWe\u2019ve been stranding these assets by not knowing whether or not we could exploit them down the road,\u201d Marion said.<\/p>\n
He also cited the country\u2019s clean electricity sector as a major opportunity for foreign investment.<\/p>\n
Still, the Bank of Canada\u2019s next moves will likely hinge on the details of Ottawa\u2019s budget. Marion predicted a quarter-point rate cut to 2.25%\u00a0at the next meeting, but said policymakers would probably pause to assess the fiscal outlook. \u201cIt will be a stimulative budget,\u201d Marion said.<\/p>\n","protected":false},"excerpt":{"rendered":"Even if economic conditions would normally justify lower rates, concerns about inflation, investor sentiment, and higher government borrowing…\n","protected":false},"author":2,"featured_media":200612,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[52,49,48,13740,44,19301],"class_list":["post-200611","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-bank-of-canada","tag-ca","tag-canada","tag-national-bank-of-canada","tag-news","tag-rate-cuts"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/200611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=200611"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/200611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/200612"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=200611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=200611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=200611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}