The December 2024 edition of Financial Markets Monthly from RBC Economics includes a forward-looking analysis of Canadian, U.S. and international financial market trends.
Highlights
"Severe tariff threats from the incoming U.S. administration will cost more than what they protect.”
—RBC Financial Markets Monthly
- International trade risks are back in focus, but economic data is tracking broadly in line with prior expectations—for now.
- The U.S. labour market continues to show enough signs of gradual cooling to warrant additional, but limited, interest rate cuts.
- The underperformance of Canada’s economy stretches on, arguing for more aggressive interest rate cuts from the Bank of Canada—even if that means a weaker Canadian dollar.
- The European Central Bank will continue to cut as much as tight labour markets and elevated wage growth allow. A similar backdrop, combined with fiscal uncertainties, means a more cautious stance from the Bank of England.
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