In early 2024, the disparity in economic performance among advanced economies has grown more apparent. Increasingly, we are seeing the Canadian economy underperforming, especially comparing to strong conditions in the U.S.. Not so optimistic, however, are the U.S. inflation numbers that are once again gathering heat. This has prompted considerations that the Federal Reserve will need to keep rates higher for much longer. But will the BoC have to follow suit?

On this week’s episode of the 10-Minute Take, RBC Economists Claire Fan and Carrie Freestone will answer this question for you. They will start by going over where the potential concerns are with a rate divergence between the Bank of Canada and the Fed, before getting to why the BoC is not expected to be derailed in its upcoming easing cycle.