The Bank of Canada announced a 25 basis point decrease in the overnight interest rate, next Wednesday, bringing the rate to 4.50%, amid expectations that inflation will continue to decline, according to a large majority of economists surveyed by Reuters. Nearly 75 percent of the experts included in the survey expect the Bank of Canada to lower the interest rate again to 4.50% on July 24.

The survey results also indicated that with the slowdown in the Canadian economy and rising unemployment rates, the Bank of Canada is expected to cut interest rates two more times in 2024, although only a slim majority of economists expect an interest rate of 4.00% by the end of this year.

Economists predicted that the Bank of Canada will continue to lower rates after July and will reduce the interest rate two more times this year, reaching 4.00% by the end of 2024, according to a slight majority of economists in the survey, about 16 out of 30 economists, while 10 of them expected the rate to reach 4.25% or higher.

Additionally, only 4 economists predicted that the interest rate would reach 3.75% this year.