Canadian Imperial Bank of Commerce: The Central Bank hinted at a rate cut, and economists expect a sigh of relief

Avery Shenfeld of the Canadian Imperial Bank of Commerce said that while the Central Bank is not ready, willing or able to cut interest rates, it is signaling that it will cut rates later this year. The economist believes that there is no reason to change the forecast for the first rate cut of 25 basis points in June, and there is no reason to change the forecast of the Central Bank to cut rates by 150 basis points by the end of the year, exceeding market expectations. Shenfeld said that the second rate cut is likely to be 50 basis points, so that the rate cut can really be initiated, because by then the Intrerest Rate will still be at a high level and policy will need to be eased to accelerate growth and avoid a hard landing.