Canada Traders Expect Rate Cuts to Begin June, Continue Through Late 2024

OTTAWA—The Bank of Canada is expected to embark on a prolonged series of rate cuts, starting this June and ending in late 2025 with the country's main interest rate two percentage points lower than its current level, according to a central bank survey released Monday. The Bank of Canada's quarterly survey, conducted in early March, is based on responses from about 30 financial-market participants on questions regarding the economy and monetary policy. The consensus toward rate cuts starting in June comes as inflation in Canada has remained under 3% for three straight months, or the upper range of the central bank's 1% to 3% inflation-target range.