David's Weekly - Jun 14 2024 and summer schedule
David Crotin, MASc, CIM, QAFP
Working with business owners, executives and professionals to provide tax, investment and financial planning strategies to meet their needs and goals.
Plan - don't predict
We will continue to publish a briefer and reduced frequency letter over the summer as we head out to enjoy some holidays and travel.
This week we're going to share some thoughts and investment ideas related to the divergence of US and Canadian interest rate cutting cycles. Enjoy.
The Bank of Canada (BoC) lowered its policy rate by 25 basis points on June 5, joining the Swiss National Bank and Sweden’s Riksbank as the first G10 central banks to cut interest rates this year. The BoC gave limited guidance on future rate cuts, but RBC Capital Markets and Bloomberg consensus expect the overnight rate will be lowered to four percent by year-end from five percent at the start of the year. These same sources expect further rate reductions in 2025.