Macquarie: The Bank of Canada may cut interest rates in July and expects interest rates to fall to 3.25% by the end of 2025

According to Jinshi, Macquarie economists said that the Bank of Canada would only consider cutting interest rates in July if Canada's inflation data for June "slowed significantly" from the previous month. Headline inflation accelerated in May, rising 2.9%, while core CPI also rebounded. Canada's June CPI report will be released on July 16, eight days before the Bank of Canada's next interest rate decision. Macquarie said this week's CPI report called into question its forecast for a rate cut in July. The company expects the Bank of Canada's interest rate to fall to 3.25% starting in July and by the end of 2025.