Skip to Main Content
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
  • Français
Français
  • Home
  • About us
    • Our Team
  • Services
  • Market insights
  • Community
  • Contact us
  • Blog
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
 CIBC Private Wealth, Wood Gundy  CIBC Private Wealth, Wood Gundy

Gross Financial Group

  • Home
  • About us
    • Our Team
  • Services
  • Market insights
  • Community
  • Contact us
  • Blog
 

Blog

Email Email
Telephone Number Tel

CIBC Private Wealth

December 11, 2024

Economy Professionals Commentary
Facebook
LinkedIn
Twitter
Tower of Canadian parliament building

Rate cut was expected and is in line with forecasts

 

The Bank of Canada (BoC) announced a 50 basis points (bps) rate cut today, bringing the target for the overnight rate to 3.25%.

 

CIBC Capital Markets says today’s rate cut by the BoC was expected and is in line with forecasts. The overnight rate is now at the top end of the BoC’s estimate range for a neutral rate. If neutral is 2.75% (the midpoint of the range), today’s announcement may be enough for the BoC to return to 25 bps rate cuts in the new year. Policymakers are starting to look for signs they’ve done enough to help lower inflation and stabilize the Canadian economy. The BoC confirmed it has eased rates substantially and will be making interest rate decisions one meeting at a time in the new year.

 

Capital Markets stated that unless we get a material dose of fiscal stimulus for 2025, the sluggish growth path and considerable economic slack may warrant a monetary policy that dips into stimulative territory. Capital Markets expects a series of 25 bps cuts to bring the target for the overnight rate to 2.25% by mid-2025 and says it will be interesting to watch how the threat of proposed US tariffs will influence future interest rate decisions. For investors, lower interest rates present unique opportunities for both equity and fixed income investments within your portfolio.

 

At CIBC Private Wealth, we take a comprehensive approach to managing, building and protecting your wealth. If you'd like to discuss this market and economic update in more detail or have questions about your investments, please get in touch with me anytime.

Related posts

CIBC Private Wealth

May 28, 2025

Advisor meeting with clients

Morning Market Brief

Canada needs to improve productivity

Read more

CIBC Private Wealth

May 27, 2025

Man at table with tablet and laptop

Morning Market Brief

Retail spending picks up in March

Read more
  • Rates
  • FAQ
  • Agreements
  • Trademarks & Disclaimers
  • Privacy & Security
  • CIRO AdvisorReport
  • Accessibility at CIBC
  • Manage Cookie Preferences
  • Cookie Policy
 Canadian Investment Regulatory Organization  Canadian Investor Protection Fund

CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc.


CIBC Private Wealth services are available to qualified individuals. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license.