Rate cuts and a return to growth: What Deloitte sees on the Canadian economic horizon

Deloitte Canada says the Canadian economy will return to growth in the second half of 2024, with interest rate cuts as early as this spring.

The firm’s economic outlook report predicts stagnant growth during the first half of the year as the effects of higher interest rates continue to work their way through the system.

The Bank of Canada held its key rate steady at five per cent in December after a heavy-handed hiking campaign to fight inflation.

Deloitte says inflation is still uncomfortably high at 3.1 per cent as of November, but it’s unlikely the central bank will hike rates further.