Post by
mouserman on Dec 10, 2024 9:53am
BOC 50 basis pt cut in interest rate expected
But no panic to get the economy going.... lol
The Financial Post reports in its Tuesday, Dec. 10, edition that the Bank of Canada will announce its final policy rate decision of the year on Wednesday, with markets anticipating a 50 basis point cut, lowering the rate to 3.25 per cent. The Post's Jordan Golwing writes that BMO economist Benjamin Reitzes noted that the November employment report increased expectations for a steeper cut after the unemployment rate rose to 6.8 per cent, the highest in almost eight years. The BOC previously cut rates by 50 basis points in October, citing labour market softness and concerns about economic growth. However, TD economist Beata Caranci argued that other positive factors, like rising consumer spending and housing market activity, should also be considered, expressing reservations about further significant cuts. Mr. Caranci said: "I am not a fan of these 50-basis-point moves. I think there is less justification now then there was last month." In November, the unemployment rate increased, while GDP growth for the third quarter was 1 per cent, below the BOC's 1.5-per-cent forecast. October inflation was at 2 per cent, meeting the central bank's target, though core inflation measures exceeded expectations.
Comment by
Golferman on Dec 10, 2024 11:52am
Mouserman I have sent you a private message