RBC CEO predicts interest rate cuts starting this summer

Victor Dodig, chief executive officer of the Canadian Imperial Bank of Commerce (CIBC), offers a slightly more conservative outlook, predicting only one or two rate cuts starting in the latter half of the year.

Since last July, the Bank of Canada's overnight rate has remained at 5%, but speculations abound regarding an impending decrease, with some economists forecasting a shift as early as the June 5 rate decision.

McKay made the comments before Statistics Canada released the March labour force survey, which revealed unexpected weakness in the job market. The unemployment rate climbed 0.3 percentage points to 6.1% after the country slashed 2,200 jobs.

McKay believes Canada’s labour market remains strong and mortgage risks are manageable. Last week, he released a statement regarding the government’s conditions for RBC to maintain and create new Canadian jobs for at least six months after acquiring HSBC.

Read more: RBC chief unfazed by US woes, sees rebound ahead