With the potential for millions of Canadians to see a bit of extra money in their pocket this spring from planned federal and provincial rebate cheques, a new report is suggesting the added money could mean at least one less interest rate cut by the Bank of Canada in the next year.

The report from TD Economics, released Wednesday, suggests the central bank will continue its rate-cutting cycle but with the planned cheques there may be less need for it to continue into 2025 at the same speed.

“The Bank of Canada has been cutting interest rates because they fear that the economy is so weak that they need to provide extra stimulus through lower interest rates,” James Orlando, director of economics at TD Bank, said in an interview.