Desjardins Group analyst Royce Mendes believes that after another 25 basis point cut to 4.5%, the Bank of Canada did not provide clear guidance on what to expect, but policymakers strongly feel an urgency to continue cutting interest rates in September. The dovish language in the policy statement prompted Desjardins to advance its expectation of a rate cut by the Bank of Canada. It is currently expected to cut rates further in September and October, and pause in December. Mendes pointed out that traders are betting further on rate cuts, and the market is approaching his prediction that the policy rate will fall to 2.5% by the end of 2025.