Rate cuts and a return to growth: What Deloitte sees on the Canadian economic horizon

TORONTO - Deloitte Canada forecasts that the nation's economy will rebound in the latter part of 2024, with potential interest rate reductions as soon as the upcoming spring. The company's economic forecast report anticipates a period of lackluster growth in the initial half of the year due to the ongoing impacts of raised interest rates. In December, the Bank of Canada maintained its central rate at five percent following a robust inflation combatting campaign. Despite November's high inflation rate of 3.1 percent, Deloitte believes it's improbable that the central bank would increase rates again. However, Dawn Desjardins, chief economist at Deloitte Canada, warns against expecting interest rates to plunge to pre-pandemic levels. Desjardins is optimistic about economic and job market improvements in the latter half of 2024 as trust begins to rejuvenate. The Canadian Press first published this report on January 4, 2024.