Experts expect several interest rate cuts by Bank of Canada this year — Bloomberg

The Bank of Canada has decided to keep its interest rate at 2.75%, signaling that fighting core inflation takes priority over concerns about weak economic growth, Bloomberg notes. However, several experts quoted by the agency believe the central bank will cut rates multiple times this year. For now, the prime lending rate at commercial banks remains at 4.95%.

Stronger-than-expected inflation has put the central bank in a difficult position. As Charles St-Arnaud of Alberta Central explained, the Bank of Canada must now balance inflation risks against concerns about the economy's health.

Leslie Preston of TD Bank warns of recession risks for Canada. She believes this scenario is likely without a significant breakthrough in trade negotiations with the US regarding import restrictions. In such a case, multiple rate cuts would be necessary. Royce Mendes from Desjardins shares this view.