07:13 AM EST, 01/03/2025 (MT Newswires) -- After the Bank of Canada lowered interest rates five times in 2024, investors and consumers can expect more such moves this year, said Morningstart.

However, analysts say the BoC's pace of easing will likely be much more modest next year, wrote Morningstar in a note published on Tuesday.

Canada's central bank cut rates at five consecutive meetings between June and December, bringing its key overnight interest rate down from its peak of 5.00% to 3.25% -- the top end of its neutral range of 2.25%-3.25%.

Despite the significant cuts, analysts point out that the job is unfinished, demonstrated by core inflation measures like stubbornly high energy prices, rising rental expenses, and growth in mortgage rate costs, which continue to drive price pressures, pointed out Morningstar.

Economists also highlight several ongoing challenges, including persistent slack in the economy, an elevated unemployment rate, and the uncertainty surrounding potential United States tariffs under the incoming Donald Trump presidential administration, it added.