Posthaste: Canada’s interest rates could fall more than many on Bay Street think

Economists predict the Bank of Canada will cut interest rates to 2% or lower due to ongoing economic weakness. Following a recent 50-basis-point cut, the benchmark rate stands at 3.75%. Analysts highlight concerns such as excess supply, low GDP growth forecasts, and rising unemployment, which is expected to reach 7%. The Bank's neutral rate is estimated between 2.25% and 3.25%, indicating that further cuts may be necessary to stimulate the economy.