"The expectation of central bank rate cuts has led to strong equity market returns this year, and should also have positive implications for loan growth and M&A deal flow, while also providing relief for Canadians," Royal Bank of Canada (RY.TO), opens new tab CEO Dave McKay said on an earnings call. Bank of Nova Scotia (BNS.TO), opens new tab executives agreed, noting that rate cuts in Peru and Mexico, where it operates, over the last few quarters have started to provide relief for consumers. "I think it's going to take probably one to three quarters depending on the consumer for it to really bear fruit" in Canada, Scotiabank Chief Risk Officer Phil Thomas said. Roughly C$86.2 billion of mortgages are negatively amortizing - in which only the interest on a loan is being paid - for BMO, TD and CIBC, down from C$94 billion in the prior quarter.