BoC to start cutting in Sept. June cut would be bad for loonie and inflationary: Earl Davis

Рет қаралды 31,898

Күн бұрын

Earl Davis, head of fixed income and money markets at BMO Global Asset Management, joins BNN Bloomberg to discuss his expectations for rate cuts in Canada the U.S. He says if the BoC cuts rates in June the loonie will weaken further, which is stimulating from an inflationary perspective. When it comes to rate cut expectations in the U.S., he says the base case scenario is cuts or no cuts.
Subscribe to BNN Bloomberg to watch more videos: / bnnbloomberg
Connect with BNN Bloomberg:
For the latest news visit: www.bnnbloomberg.ca
For a full video offering visit BNN Bloomberg: www.bnnbloomberg.ca/video
BNN Bloomberg on Facebook: / bnnbloomberg
BNN Bloomberg on Twitter: / bnnbloomberg
BNN Bloomberg on Instagram: / bnnbloomberg
BNN Bloomberg on LinkedIn: / bnn-bloomberg
--
BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets.

Пікірлер: 76

@kevinmathew4409 2 ай бұрын

These people keep speaking and their predictions have never come true

@tylerdurden8378 2 ай бұрын

Hard to predict what will happen in a casino.

@ron.mexico. 2 ай бұрын

You haven’t been following Earl. And his message going forward is scary. Nothing he said or is saying now is positive.

@juancgarcia3535 2 ай бұрын

Exactly. Carbon tax increase will catapult inflation and the interest rates will keep going up. Common sense.

@Jersderakerguoe 2 ай бұрын

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

@HectorWhitney 2 ай бұрын

The financial market is a reliable choice. Diversify your portfolio with I-bonds, stocks (ETFs, REITs, dividend-paying stocks), and bitcoin. Given your budget, I recommend hiring a fiduciary to ensure you receive professional insights for a fee.

@hersdera 2 ай бұрын

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

@GeorgeDean-km3wm 2 ай бұрын

I'm pleased I found this conversation. If you're comfortable with it, could you share how I can get in touch with the advisor you rely on for your investments?

@hersdera 2 ай бұрын

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.

@CraigLloyd-fz6ns 2 ай бұрын

Thanks for this. I curiously searched for her full name and her website came first. I looked through her credentials and did my due diligence before contacting her. Once again many thanks

@Really250 2 ай бұрын

BoC isnt going to cut anything until government spending and inflation goes ways down. Eg, there is no way they can cut rates. The US Fed is going to sit this one out when it comes to the 2024 election.

@stephenr6194 2 ай бұрын

Rate cut Cheers leaders are in full force 😂

@bluesmansunnyfournier4727 2 ай бұрын

The Canadian Peso keeps on sinking.

@sharinglungs3226 2 ай бұрын

First sign was teardowns for over a mill. We are so screwed but at least there’s hope Trudeau will be gone next election.

@hiro0500 2 ай бұрын

I remember they said interest rate is gonna come down since last year, let's face it, is not coming down soon.

@vtar2523 2 ай бұрын

Canadian T~bill are a jock I still don’t understand how they can be 2% percent less than what I could get in US money market

@donniemcleod2381 2 ай бұрын

They are not cutting 5% is a normal rate historically if we can't handle 5% our country is in very big trouble.

@MrJabez89 2 ай бұрын

If you keep saying "next month" enough times, eventually you will get it right

@ShamileII 2 ай бұрын

Great interview! Down here in the US, I don't see rate cuts but higher for longer. Unfortunately, our "1 Trillion every 100 days" deficits had an inflationary effect.

@nadiain755 2 ай бұрын

No cuts will happen, they are forecasting house price rise by 4.9 % which only means that inflation is much higher.

@gord1527 2 ай бұрын

Dont forget gas will be at near $2/litre this summer too. That won't help.

@StuKatz911 2 ай бұрын

They are not cutting so stop with the bullllshit

@gamerstv2444 2 ай бұрын

If the unemployment rise they will force to cut. Canada is already in technical recession compared to stronger US economy.

@jeffrey1411 2 ай бұрын

@@gamerstv2444our CAD will collapse which will bring imported inflation because cost of US goods increases. Then BoC will need to increase rates again or risk devaluing our CAD into Canadian Pesos. We could see 50 cents on the US dollar if that happens.

@gamerstv2444 2 ай бұрын

@jeffrey1411 It doesn't work that way. BOC can increase the rates if the economy is doing well.If the economy is in bad condition, no one will be interested in the Canadian dollar.

@jeffrey1411 2 ай бұрын

@@gamerstv2444 Canada economy won't be doing bad because US economy is BOOMING.

@john60123 Ай бұрын

@@jeffrey1411 I totally agree with your comment, it could get scary. The Liberal Government has created a huge problem.

@jeffotoole4509 2 ай бұрын

So 7 cuts. Went to 6 to 5 to 4 to 3 to 2 and then we might get 1. For all those that have variable rate loans which I am sure John Erlichman has one is holding on for dear life. Man oh man leverage really hurts when it goes against you. Looks good on all the greedy people.

@Really250 2 ай бұрын

You nailed this. There is no way they can cut when inflation is over 40% higher than the target. Our government is way over spending and they have a track record of spending on stupid things that don't help Canada.

@reallythere 2 ай бұрын

Greedy?

@jeffotoole4509 2 ай бұрын

@@reallythere yep

@lilsabin 2 ай бұрын

Anybody that believed in the 6 rate cuts is a real idiot or uneducated 😂🙂

@dirtlump 2 ай бұрын

Keeping in mind that any premature BoC rate cut will have disasterous consequences.... if Canadian metrics unfold broadly as expected ? I'm also seeing best opportunity for BoC latitude in deviation lower on rates from US Fed Policy in September once the US Election cycle entrenchs a Fed 'hold' on rates/Bond market volatility subsides. Q3/September also allows better data trajectory assessment on so many other metrics just NOT viable to accurately assess in JUNE/JULY ie: Gov't Fiscal pressures, REPO operations, unemployment/core cpi/pmi/defaults and on and on and on. Again here.... within what is basically a tale of two distinct Banking/Financial system economies as wealth inequality deepens... any premature stimulative rate cut offered in "relief" to one segment.... could have absolutely catastrophic consequences when capitalized upon by another segment further exacerbating societal instability... Yeah.... it's THAT Bad when central Bank policy has severe societal ramifications ! The ROCK and a very HARD place the BoC finds itself.

@Lpmeff 2 ай бұрын

I really enjoyed that guest a very straightforward guy

@dev4statingx90 2 ай бұрын

More hikes please! My tfsa loves it

@MotherRat-ii6ji 2 ай бұрын

No cuts this year.

@sachin2842 2 ай бұрын

THEY DONT STOP FOR ANOTHER 3 YEARS!

@john60123 Ай бұрын

I totally agree with your comment, it could get scary. The Liberal Government has created a huge problem. BOC will be in an interest rate increase and decrease cycle, a tug war between a slowing economy and Government debt. The Liberal Government has caused the increased inflation cycle.

@dougiep2769 2 ай бұрын

They cant cut rates. If they do its over for the dollar which continues slide even keeping rates stable

@derek04151 2 ай бұрын

I agree. September at the earliest if at all. 25 beeps

@eskimomonkey2 2 ай бұрын

The entire premise of raising rates have served their purpose. Canadians have no more disposable income to spend. Higher rates have robbed us of that. The over heated economy has cooled. Inflation is no longer due to Canadians having excess money to spend and over heating the economy. Keeping rates where they are will not bring down inflation.

@En1337Rich Ай бұрын

The Keg's still full every time I visit, k. FULL. People have plenty of disposable income still. Lots of irresponsibility still happening in both public and government sectors.

@ChrisMCP2 2 ай бұрын

Lol clown. They had to cut this week, it's too high too long. Lonnie should be at 85 cents with oil ose to 90, it has been manipulated heavily for years.

@jeffrey1411 2 ай бұрын

BoC can't cut if the federal reserve doesn't cut. Think about it like this, if you had 1bil in cash and the US was offering 5.5% interest rate and Canada was offering 3.5-4% interest rate. Which market will you invest in? Also, if you had 1bil invested in Canada, but the US was offering a higher interest rate, you would pull out of the Canadian market to invest into the US market. Supply and demand, weaker demand = lower prices, hence why the CAD will crash if BoC lower rates.

@jessefaw Ай бұрын

Honestly, the next move is probably a rate hike

@Trinijim 2 ай бұрын

There will be no cut until either the US cuts/ major job loss/ catastrophe! If we cut to early the dollar drops to $0.65 your big Mac combo goes from $12 to $20

@upupandaway5646 2 ай бұрын

So much confusion in this subject ROLL THE 🎲 DICE

@debbiesmith1687 2 ай бұрын

Making the rich richer snd the poor poorer seems the bank of canada goal. Its working well.look at csu then look at canadian tire.

@nitinprasad3842 2 ай бұрын

It is not about rich or poor btw i am no where near rich but actually closer to poor . But we cant afford to cut the rates ,what ever you are seeing is govt spending and stimulus checks there is nothing called a free meal in the economics . If they are cutting now instead of increasing what is waiting for us is hyper inflation believe me you will not like it whether you are rich or you are poor . Canadaians should stop their f ing greed for speculation of housing market and start being productive and deregulate the economy instead of Being ready to suffer to protect the false pride otherwise what is waiting for us is being next Argentina that day seems not far.

@King_of_Sofa 2 ай бұрын

The problem is that the system is a debt based economy. Debts and monthly payments are normalized. If the norm among the majority of the population was to save up and buy things in full, prices of houses and vehicles would be a fraction of what they are. We live in a time where the masses have long since capitulated to the debt system. So I'll just do my thing and play the crypto game. FUCK THE DEBT BASED SYSTEM. For better or worse I will stand alone if it means not submitting