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He is interpreting that to mean Bank of Canada governor Tiff Macklem is edging closer to making his first rate cut, though \u201cthere was no sign that cuts are imminent,\u201d Brown said.<\/p>\n
The central bank could be of the mind now that inflation isn\u2019t as bad as the headline numbers might suggest, Brown added, noting that the bank\u2019s statement referenced the \u201coutsized role\u201d shelter costs \u2014 mortgage interest costs and rents \u2014 are having on the consumer price index.<\/p>\n
At this stage, the central bank still believes the Canadian economy can avoid a recession and is calling for 2024 GDP of 0.8 per cent. However, Brown believes the bank is overestimating growth and that will force Macklem to shift to cuts sooner than expected.<\/p>\n
\u201cGiven the shift in tone today, we are sticking to our view that the bank will be prepared to make policy less restrictive by beginning to cut interest rates at the April policy meeting,\u201d Brown said.<\/p>\n
Avery Shenfeld, CIBC<\/h2>\n
Avery Shenfeld, chief economist at CIBC World Markets, noted that the bank dropped its language regarding the need to hike rates again if inflation persisted, replacing that \u201chawkish bias\u201d with the more cut-friendly wording that it remains \u201cconcerned\u201d about persistent core inflation.<\/p>\n<\/section>\n