Global investment bank expects BoC to cut rates faster, more aggressively than it previously thought

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Plus, Wells Fargo sees more downside for the S&P 500

Economist David Doyle of global investment bank Macquarie now expects the Bank of Canada to cut rates even faster,

“Governor Macklem … was unambiguously dovish during his press conference, stressing progress on YoY inflation measures and placing emphasis on excess supply and labour market slack. There was no mention of the recent upturn in monthly underlying inflation readings, although the statement did suggest that shelter and other services were holding inflation up. We alter our baseline view on the BoC on this communication. We now expect the Overnight rate to fall to 3.

“Our view: We expect the majority of the companies in our coverage to deliver solid and predictable results and in particular, we look to the conference calls to see how the various management teams message the positioning of their asset bases to benefit from increased electricity demand.

Mr. Kwan has outperform ratings on TC Energy Corp., Enbridge Inc., Pembina Pipeline Corp., AltaGas Ltd., Keyera Corp., Brookfield Infrastructure Partners, Gibson Energy Inc., and Tidewater Renewables Ltd.“Our SPX price target remains 5535, indicating ~2% upside – not enough to put new money to work.

 

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