Bank of Canada Expected to Cut Interest Rates Again
Canada – The Bank of Canada is poised to make its final interest rate announcement of the year, with economists widely predicting a half-percentage point cut.
This anticipated move would bring the central bank’s key rate down to 3.25 per cent, following a similar reduction in October.
Why a Rate Cut is Expected
The November labour force survey solidified expectations for a rate cut. The latest employment figures revealed an increase in the jobless rate to 6.8 per cent.
In October, the Bank of Canada lowered its benchmark interest rate by half a percentage point in response to inflation returning to its two per cent target. At the time, Governor Tiff Macklem emphasized that future decisions would be data-dependent.
Will this be the final rate cut for 2024? Stay tuned to find out.