Bank of Canada expected to cut interest rates for the first time in over four years amid economic slowdown and easing inflation.
This morning, all eyes are on the Bank of Canada as it prepares to unveil its latest interest rate decision. Economists widely anticipate the central bank to lower its key interest rate by a quarter of a percentage point, marking the first rate cut in more than four years. Currently, the key interest rate stands at five percent, the highest it has been since 2001.
The anticipation of a rate cut comes amid signs of a noticeable slowdown in inflation and prevailing economic weakness. The central bank’s decision to potentially lower the rate is seen as a proactive measure to stimulate the economy and address the inflationary pressures that have been easing in recent months.
A rate cut would place the Bank of Canada ahead of some of its international counterparts, including the U.S. Federal Reserve, which has maintained a more cautious stance on altering its monetary policy. By reducing the interest rate, the Bank of Canada aims to lower borrowing costs, thereby encouraging spending and investment within the economy.
Governor Tiff Macklem is scheduled to hold a news conference at 10:30 a.m. Eastern Time to discuss the decision and its implications. His remarks will be closely scrutinized for insights into the central