Experts predict less significant cut cycles from the BoC, U.S. Fed

Rate cut expectations in both Canada and the U.S. are being pared down, according to experts.

Christian Lawrence, a senior cross-asset macro strategist at Rabobank, said in an interview with BNN Bloomberg Friday that at the beginning of the year more than 100 basis points of interest rate cuts were priced into the market for the U.S. Federal Reserve, with similar expectations for the Bank of Canada. 

“And now if you look at the U.S., it's less than 50 basis points priced by the end of the year, a little more in Canada at 60 basis points,” he said. 

“And I think that pricing is pretty reasonable. We do expect the Bank of Canada to start cutting rates this summer, but for the Fed, we expect them to really wait until September before the first move.”