Interest Rate Forecast: Lower for Longer?

It feels like just yesterday that "higher for longer" was the going cliché in economic circles. After Tuesday's CPI improvement, however, people might flip that phrase on its head.

Borrowers got the CPI print they needed to pave the way for a BoC cut on July 24. Headline inflation clocked in at just 2.67%, its lowest in 3¼ years. (Most media reports round up the 2.67% to 2.70%.)

Moreover, as economist David Rosenberg pointed out on Tuesday, "When you take out mortgage interest costs (what is that doing in the CPI, anyway?), inflation in Canada is running at +1.9%."

Every economist worth their salt now sees the BoC clipping rates 25 bps next Wednesday. Yet that cut is already yesterday's news.

With the BoC gearing up to ease once more, the bigger head-scratcher is: what's the game plan post-July?

Here are 10 quick facts on that: