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Bank of Canada Q2 Survey Shows Market Participants See Total 50bps Rate Cut This Year; First Rate Hike in Q3 2027

BY MT Newswires | ECONOMIC | 08/11/25 10:43 AM EDT

10:43 AM EDT, 08/11/2025 (MT Newswires) -- The median response of the Bank of Canada's Q2 Market Participants Survey (MPS) sees the BoC cutting rates by 25bps in September and a further 25bps in December 2025.

The BoC's current policy rates is at 2.75%.

Canada's central bank is first seen lifting rates by 25% in Q3 2027, according to the MPS results released on Monday which are based on questionnaire responses from about 30 financial market participants.

Median responses indicated a 0.8% gross domestic product growth this year for Canada, rising to 1.8% in 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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