Interest Rate Hike Anticipated in 2023, No Hikes Expected in 2024: BMO Analyst

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Interest Rate Hike Anticipated in 2023, No Hikes Expected in 2024: BMO Analyst

Earl Davis, an analyst at BMO, predicts a final interest rate hike for 2023 due to persistent inflation. However, he does not foresee any hikes in 2024, despite the key interest rate currently standing at a two-decade high of five percent. This prediction was made on Tuesday.

Davis highlighted the negative GDP from Q2 as an indicator of slowing growth. He also stressed the importance of employment and unemployment figures in shaping future policy decisions.

Looking ahead, Davis anticipates a gradual economic slowdown and a soft landing. He believes that potential shifts could follow the U.S. presidential election in 2024 and the interest rate decision slated for October 25.

His predictions suggest a cautious approach towards monetary policy amid stubborn inflation and signs of slowing economic growth. The impact of these factors on future policy decisions will be closely watched by investors and policymakers alike.

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