The Bank of Canada is lowering its policy rate in a bid to stimulate growth in the Canadian economy to avoid inflation dropping too far below target.
With the Bank of Canada gearing up for its final interest rate decision of 2024, experts warn the Canadian dollar could well have further to fall if the central bank delivers the sizeable cut that markets expect. Anne Gaviola has this story and more in Business Matters for Dec. 10, 2024.cut of half a percentage point on Wednesday, but signalled the pace of easing may slow as uncertainty builds in the Canadian economy.
Bank of Canada governor Tiff Macklem said in prepared remarks on Wednesday that with the central bank now having “substantially” cut its policy rate since June, future rate decisions will now be taken “one meeting a time.” “We anticipate a more gradual approach to monetary policy if the economy evolves broadly as expected,” he said. “Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook.”The central bank’s policy rate broadly sets the cost of borrowing in Canada and is a key input for interest rates Canadians pay on their mortgages and other loans.
Inflation Interest Rate Canada Economy Money
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.
Former Bank of Canada Governor Claims Canada in Recession Despite Lack of Consecutive Negative GDP QuartersStephen Poloz, former governor of the Bank of Canada, asserts that Canada is in a recession despite not meeting the technical definition of two consecutive quarters of negative GDP growth. Poloz attributes the lack of a technical recession to increased spending by new immigrants, while noting Canadians are spending less due to rising costs of living.
Read more »
Canada's GDP Growth Below Bank of Canada ForecastNew data from Statistics Canada shows Canada's GDP grew by 0.1 percent in August, September, and October, leading to a 1 percent growth for the quarter, below the Bank of Canada's forecast of 1.5 percent. This has increased the likelihood of a larger interest rate cut by the central bank next month.
Read more »
Bank of Canada's Interest Rate Cuts Could Spark Mortgage Competition in CanadaThe Bank of Canada has initiated interest rate cuts, shifting the mortgage market outlook for 2025. As borrowing costs drop and fixed-rate loans come up for renewal, Canadian banks are expected to engage in a mortgage competition, following a year of subdued loan growth.
Read more »
Canadian Leaders Express Concern Over Trump's Proposed Tar on Canadian GoodsCanadian business and political leaders are voicing concerns about Donald Trump's pledge to impose a 25-per-cent tariff on all Canadian goods coming into the United States. They argue that such tariffs would harm businesses on both sides of the border and weaken North America's economic and geopolitical strength.
Read more »
'It's a heavy hit': Canadian travellers cope with weak Canadian dollarDespite rebounding on Wednesday, the Canadian dollar continues to face pressure after U.S. president-elect Donald Trump threatened to impose a 25 per cent tariff on all Canadian imports.
Read more »
Banker Bonus Pools Increase 12% at Canada’s Six Largest LendersCanada’s largest banks all are poised to pay their employees more in variable compensation for 2024, with stock-market favorites Royal Bank of Canada, Canadian Imperial Bank of Commerce and National Bank of Canada increasing bonus pay the most.
Read more »