Lowers its inflation forecast and accelerates monetary policy easing in a bid for economic soft landing
Bank of Canada Governor Tiff Macklem holds a press conference at the Bank of Canada in Ottawa on Wednesday, Oct. 23, 2024. THE CANADIAN PRESS/Sean Kilpatrickcut its policy interest rate by half-a-percentage point and said that inflation has largely returned to normal, accelerating the pace of monetary policy easing in an attempt to engineer a soft landing for the economy.
The larger-than-usual rate cut follows a string of data showing that Canadian inflation is lower and economic growth is weaker than the bank expected. With price-pressures essentially under control, the bank is trying to get borrowing costs back to a neutral level relatively quickly to avoid an unnecessary recession or further weakening in the job market.
Market speculation now turns to the next rate decision on Dec. 6. Interest rate swap markets put the odds of a quarter-point cut at around 80 per cent, according to LSEG data. But some Bay Street economists think the bank could deliver another oversized move. Annual CPI inflation hit the bank’s 2-per-cent target in August for the first time since 2021 then fell to 1.6 per cent in September, pulled lower by falling oil prices. The bank expects headline inflation to perk back up above 2 per cent in October, but then to fluctuate around the target going forward.
Cent Bank Inflation Target Growth Rate Economy Forecast Bank Of Canada Middle East Canada
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
National Bank Gets Green Light For $5 Billion Takeover Of Canadian Western BankCanada's National Bank has received approval from the Competition Bureau of Canada for its proposed $5 billion acquisition of Canadian Western Bank. This marks the second major bank merger in Canada within a year, following Royal Bank of Canada's purchase of HSBC Bank Canada earlier this year.
Read more »
Deloitte Canada Predicts Economic Growth Next Year As Bank Of Canada Rate Cuts ExpectedDeloitte Canada forecasts economic growth in 2024 with the Bank of Canada lowering its key interest rate below three percent by mid-2025. The report predicts a moderate economic expansion despite softer labor market conditions and the impact of higher borrowing costs.
Read more »
A 75-basis-point cut more likely than 25, says a CIBC economistDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Read more »
Market Factors: A 75 basis point rate cut would not be that surprisingPlus, how the inflation of the 1970s relates to today and the most important indicator for household debt
Read more »
Bitcoin dominance declines as 75% altcoins outperform BTCBTC.D has declined by 2.24% as investor predict altcoin season. 75% of altcoins have outperformed Bitcoin over the past 90 days
Read more »
75 years after Hiroshima bombing, it's falling to descendants to keep survivors' stories aliveKathleen Burkinshaw, right, wants to make sure the story of her mother, Toshiko Ishikawa, and her survival of the bomb that fell on Hirsohima on Aug. 6, 1945, continues to be told. Ishikawa died in 2015.
Read more »