The Globe and Mail reports in its Thursday, March 21, edition that Bank of Canada officials anticipate interest rate cuts this year if the economy develops as expected. The Globe's Mark Rendell writes that according to a summary report, Governor Tiff Macklem and his deputies are cautious about reducing borrowing costs too early, especially as the spring housing market is picking up. However, as inflation approaches 2 per cent, the BOC said it is open to discussions about when to implement rate cuts, although policy-makers have some reservations. The BOC said Wednesday, "Members agreed that if the economy evolves in line with the bank's projection, the conditions for rate cuts should materialize over the course of this year." The case for cutting interest rates sooner rather than later was bolstered on Tuesday, when Statistics Canada reported a surprising drop in inflation. Annual consumer price index inflation fell to 2.8 per cent in February, down from 2.9 per cent in January. These are the first back-to-back months where inflation has been within the BOC's target range of 1 per cent to 3 per cent since early 2021. Analysts have now increased their bets that the BOC will begin lowering interest rates in June.