OTTAWA — The Bank of Canada marked a major turning point in its fight against inflation on Wednesday as it lowered its key interest rate for the first time in more than four years, making it the first central bank in the G7 to cut rates.
Governor Tiff Macklem says the central bank has more confidence inflation is moving closer to its two per cent target, citing various indicators that suggest price pressures have retreated.
The rate cut Wednesday also opened a new chapter for the Bank of Canada, which has been preoccupied with wrestling inflation down over the last two years. "Canada is the first G7 country where interest rates have been lowered. Our economic plan is working and that is really welcome news for Canada and Canadians," she said.
"This rate cut is not a mark of success for Justin Trudeau but rather a reminder that millions of Canadians will be forced to renew their mortgages at much higher rates thanks to his inflationary policies." The Canadian economy has also weakened under the weight of high interest rates. Economic growth in the first quarter came in lower than forecasters expected, and the unemployment rate has steadily risen, reaching 6.1 per cent in April.
TD expects the Bank of Canada to lower its key interest rate to 4.25 per cent by the end of the year.
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.
Here's a list of April inflation rates for selected Canadian citiesOTTAWA — Canada's annual inflation rate was 2.7 per cent in April, Statistics Canada says.
Read more »
Ottawa police investigating pills found inside bread scattered in east Ottawa neighbourhoodOttawa police are investigating after pills were found inside pieces of bread scattered about an east Ottawa neighbourhood.
Read more »
Tornado warnings in Ottawa Valley lifted, severe storms still in area; Ottawa under thunderstorm watchTornado warnings that were issued in parts of eastern Ontario have been lifted but a storm system is still moving across the region. While there is no tornado warning for the city of Ottawa, a severe thunderstorm watch is in effect.
Read more »
'Not the Ottawa Pancakes': NFL player wonders if logo represents an Ottawa teamThe NFL schedule was released Wednesday night, with all 32 teams posting videos on social media to unveil their schedules for the 2024 season. Teams used fans, computer models and players to create videos for the schedule release.
Read more »
Ottawa police investigating reported hijab-pulling at Israeli flag ceremony in OttawaThe Ottawa Police Service says its hate crime unit is investigating a reported hijab-pulling incident at Tuesday's protest at Ottawa City Hall when the Israeli flag was raised for the country's independence day.
Read more »
Ottawa firefighters extricate driver after single-vehicle rollover south of OttawaFirefighters extricated a trapped driver from his car on Saturday evening in a rural area south of Ottawa.
Read more »