Bank of Canada's cutting cycle a 'big tailwind for Canadians': economist

One economist says that over the longer term, Canada’s interest rate-cutting cycle will spur strong economic growth relative to the U.S.

James Orlando, director and senior economist at TD Economics, said in an interview with BNN Bloomberg on Wednesday that over the last two years, Canadians “have been suffering the weight of high interest rates.” He added that due to high levels of debt, Canadians are more sensitive to elevated borrowing costs. 

“Looking forward, we keep wondering when Canada (is) going to have its time to shine with respect to high economic growth,” Orlando said. 

“The change in interest rate policy, going from the Bank of Canada having five per cent policy rates to continuously likely cutting over the next year, year and a half, that is a big tailwind for Canadians, where we're going to be able to have less of our disposable income going to mortgage payments.”