# Proof Point: A weaker Canadian dollar won’t necessarily derail BoC interest rate cuts - RBC Economics

> RBC Economics argues the Bank of Canada will set rate cuts based on domestic conditions rather than the Fed gap or the loonie. It expects the BoC to cut earlier and more than the Fed, and notes Canadian GDP per capita has lagged the US since 2019.

- Date: 2024-04-23 · published 2024-04-23T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/30973-proof-point-a-weaker-canadian-dollar-won-t-necessarily-derail-boc-interest-rate
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

The view that a weaker loonie will not block BoC cuts implies sustained currency weakness, which matters for import costs on Canadian feed purchases but has limited direct grain price impact.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- rbc.com: https://www.rbc.com/en/economics/canadian-analysis/featured-analysis/insights/proof-point-a-weaker-canadian-dollar-wont-necessarily-derail-boc-interest-rate-cuts/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.