In this 2015 interview with the Globe and Mail’s Paul Waldie, Ed Devlin discussed whether the Bank of Canada will cut interest rates or not.
Ed Devlin stated that while the decision to cut interest rates could go either way, he and his colleagues (at the time at PIMCO) believed that interest rates would be reduced. The argument for a potential cut was that the Bank had misjudged financial forecasts and that cutting the interest rate at that time would be preferable to cutting it during the election cycle. Ed thought that this cut would only be in the short term, and that in the long term, interest rates would actually be slightly higher. When asked about the general state of the Canadian economy, Ed stated that the energy shock was larger than expected, but also that it did not affect a broad range of markets. The factor to watch would be oil prices.