Deloitte Predicts Moderate Economic Growth and Interest Rate Cuts in Canada

The Bank of Canada is expected to lower its key interest rate below 3% by mid-2025, according to Deloitte's fall economic outlook.

Deloitte forecasts the Bank of Canada's interest rate to fall to 3.75% by the end of 2024 and to a neutral rate of 2.75% by mid-2025.
The Canadian economy is expected to grow moderately next year, avoiding a recession despite higher borrowing costs.
Inflation in Canada has reached the central bank's 2% target, with further interest rate cuts anticipated.
Housing affordability remains a concern, but lower rates are expected to rejuvenate construction activity and support a modest housing market recovery.
Global uncertainties, including ongoing conflicts and the upcoming U.S. election, continue to pose risks to economic stability and investment confidence.