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BMO Now Sees A 25bps Bank of Canada Rate Cut in September, December 2025, March 2026

BY MT Newswires | ECONOMIC | 07/16/25 08:10 AM EDT

08:10 AM EDT, 07/16/2025 (MT Newswires) -- It was the summer of 2022 when inflation in both Canada and the United States hit a four-decade high, noted Bank of Montreal (BMO).

Three years later and -- though cost pressures have come down significantly -- the battle to restore price stability is still on-going, said the bank.

Canada's headline inflation rate picked up two-tenths to 1.9% year over year in June, while core measures remained stubborn at around 3%. According to BMO, those figures give the Bank of Canada almost nothing to justify a rate cut in July.

As such, the bank has pushed back its rate-cut call, now expecting a 25bps move in September, December 2025 and March 2026.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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