RBC Financial Markets Monthly

Central banks kick off rate cuts

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The June 2024 edition of Financial Markets Monthly from RBC Economics includes a forward-looking analysis of Canadian, US and international financial market trends.

Highlights

"Canada's economy has been underperforming global peers for over a year."

RBC Financial Markets Monthly

  • The BoC and ECB kickstarted the easing cycles in June, while the BoE’s first interest rate reduction is anticipated in August
  • The Fed is expected to stay on hold until later in December and the RBA until 2025
  • The pace of interest rate cuts will be gradual in all regions but slightly faster and deeper in Canada
  • Catch up in wage growth shouldn’t worry central banks—yet
  • Rate cuts won’t spur economic growth right away

 

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Sources

RBC Economics, Financial Markets Monthly, June 2024