North American Financial 15 Split Corp T.FFN

BOC cuts interest rate by .25%

[mouserman]

The Bank of Canada cut its benchmark interest rate by 25 basis points on Wednesday for the second consecutive time, a widely expected move that brings its policy rate to 4.5 per cent. The rate cut comes as inflation moderated to 2.7 per cent in June, with price pressures broadly easing.

At the same time Canada’s labour market has stalled, as job growth has struggled to keep pace with the country’s surging population and it takes longer for people to find work. Economic growth also remains sluggish, falling short of its potential output.

“With broad price pressures continuing to ease and inflation expected to move closer to 2 per cent, Governing Council decided to reduce the policy interest rate by a further 25 basis points,” the Bank of Canada said in a statement.

 

“Ongoing excess supply is lowering inflationary pressures. At the same time, price pressures in some important parts of the economy – notably shelter and some other services – are holding inflation up. Governing Council is carefully assessing these opposing forces on inflation.”

[mouserman]

So inflation numbers are down, but are they including those items we need the most? Rent is outrageous pushed up by alltime high immigration , food prices are still much higher than prepandemic, and fuel this year in JAN averaged  1.35 a liter, and last month 1.64... insurance premiums have risen, and most services are much higher. SO what has gone down? Should we care about cheap clothes and

[Nakate]

Nothing has gone down except real incomes, inflation is always going up only not so fast, wages are the real battleground and that is where the progress is, poorer people work more and that is the "win" that gives the feds the room to move.