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David Rosenberg, founder and president of Rosenberg Research, recently told the Financial Post's Larissa Harabin that he expects a rate cut in the central bank's next announcement in June.
“I think the bank should cut interest rates at the next meeting,” he said in a video interview. “If they don't, I think providing some strong directions for action at the next meeting would be within reach.”
“The longer they wait, the more they have to do.”
Rosenberg said the economy is currently oversupplied, and in times of oversupply, the interest rate has historically hovered around 2.5 or 3 percent.
He added: “This is how far the Bank of Canada has to go, and I don't know what reason – I don't really know – why they are holding back.”
Charles St. Arnaud, chief economist at Alberta Central, echoes Rosenberg's sentiments that further adherence to interest rates would hurt the economy.
“If the (BoC) does not cut rates, it would be a matter of extreme caution in our view, rather than a signal that upside risks to inflation remain a concern,” he wrote in a note to clients earlier this week.
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Regarding the number of cuts expected in 2024, Rosenberg expects Canadians will see several steps of mortgage relief this year.
“I think the bank should lower interest rates and lower them more than once,” he said.
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