04:29 PM EDT, 08/02/2024 (MT Newswires) -- Douglas Porter over at BMO Economics in his weekly 'Talking Points' note on Friday also looked at the Canadian economy, and said he and the BMO team are also revising their Bank of Canada call "somewhat". With the Fed expected to get "a bit more forceful", BMO noted this opens the door for the BoC to "match its own dovish stance with faster action". BMO now looks for the BoC to cut in each of the next four meetings, quickly taking their overnight rate down to 3.5% by January (from 4.5% now), and then to 3.0% by mid-2025.

"That means the Bank will arrive at the presumed end point more than half a year earlier than expected," Porter said, before adding: "We had warned that the risk was for sooner/faster, and a milder Fed certainly provides the cover for the Bank to follow."