08:25 AM EDT, 03/24/2025 (MT Newswires) -- The Bank of Canada fully realizes the downside risks that the Canadian economy faces so it was very prescient to have embarked on a path to cut rates 225 basis points from last year's peak, said Rosenberg Research.

At least the policy rate is in the "neutral" zone and no longer restrictive, noted Rosenberg Research.

That said, the recent comments out of Governor Tiff Macklem leaned more on the inflation and inflation-expectation front, and that is a sign that the BoC won't resume its easing strategy until it gets more clarity on this, as well as just how deep the economic turndown is going to be.

The thing is, the core inflation metrics began to rebound prior to the United States tariffs, though the data have been distorted by the sales tax holiday, pointed out Rosenberg.

However, the commentary from the BoC chieftain is going to wait and see before restarting the rate-cutting cycle, it added.