Bank of Canada cuts key interest rate to 3.75% | FULL

The Bank of Canada delivered an oversized interest rate cut of half a percentage point on Wednesday, picking up the pace of easing borrowing costs.

The central bank’s policy rate now stands at 3.75 per cent.

Wednesday’s decision is the fourth consecutive drop in interest rates since June and is the Bank of Canada’s largest rate cut since the global financial crisis in 2009, outside the COVID-19 pandemic.
“It’s been a long fight against inflation. But it’s worked,” said Macklem in press conference on Sunday.
“And I think Canadians can breathe a sigh of relief,” he added.

Macklem said that he expects Wednesday’s rate cut will lead to a boost in spending among both consumers and businesses.

The Bank of Canada’s final interest rate decision of the year is set for Dec. 11.

#GlobalNews #bankofcanada #TiffMacklem

[scoutbagel]

There is a huge lag between when rate cuts are implemented and the effects are actually felt. Not only that, but rate cuts themselves always happen based on lagging indicators, such as unemployment (unemployment data always lags hiring data since businesses stop hiring before they start firing). This is why rate cuts have almost never successfully prevented a recession. We saw it in '08. The yield curve uninverted, the fed cut rates, the markets surged for a bit based on false hope and reality set in soon after as the bad unemployment data caught up to the bad hiring data and it was armageddon from there. Anyone feeling the impact of these economic shifts should consider Crypto long-term trading strategies to protect their assets. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 720k from day trading with Aria cookings in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

[nottellinnoone]

How do they think spending will go up when unemployment is still going up . Like really 😂😂😂

[Laomai]

Lower global OIL PRICES!!?? Do you know what’s going on in the world!!??😂

[masquereseau]

I also avoid any restaurants like the plague. Not giving my money to thieves.

[gloriavinez]

The government is such a life saver. We should buy them all coffee. What would we do without them 😮

[Womba]

Lower borrowing costs means more demand, pushing up costs (inflation). It is the taxes that are restricting the economy, the government borrowing more than it needs and spending it on itself. Canadians need to repay their debts so the economy can grow in a real way instead of borrowing to grow. The bank only controls the interest rates so cuts are good for the flow of money and bad because that does not lower prices. We have seen a 20%+ increase in the cost of the economy since 2020. It is that cost that needs to come down and lowering interest rates will not do this. So we either get a 20%+ boost in wages that the banks said do not do, or we need a recession to bring the costs down. Lowering borrowing rates only creates demand for money, pushing up prices. Again, the bank only controls the flow of money and nothing else. It is the failure of government that has created the poor economy Canada has today. We need change from Government.

[masquereseau]

If they think I will increase my spending, they're crazy. I cut 80% of my subscriptions and also CAA Quebec. CUT! If my car breaks down, I will not replace it right away. Stopped going to the grocery store until I empty all my reserves. P.S. I'm not poor but I'm sitting in a comfortable chair while the crazies are still running around with the music playing.

[SIRA]

Why do farmers destroy product to keepprices higher than they need to be? Need to get rid of government scammers

[missmulalonde]

Of course they are gonna say what the gov't wants them to say..

[CommonWealthRiches]

Renters are cry and home owners are rejoicing but they waited way too long for these rate cuts. Unemployment skyrocketing

[hernansoto]

Based on my understanding, the main issue with inflation is tied to the government's continued money printing, while lowering interest rates boosts purchasing power, further driving up the prices of goods and services. I don't believe Canada is currently in a recession (typically defined by two consecutive quarters of negative GDP growth). The real suffering for people comes from the depreciation of the value of money.

CPI is an imperfect measure of inflation, as it provides an average representation of consumer spending but doesn't capture individual purchasing habits. It also suffers from substitution bias, failing to account for consumers switching to cheaper alternatives when prices rise. Additionally, CPI excludes key assets like real estate and investments, and it doesn't reflect regional cost differences, making it less comprehensive for measuring all aspects of inflation or the cost of living.

In my opinion, a recession is a natural and healthy part of the economic cycle. Cutting interest rates in response is a mistake that could cause more harm than good in Canada. While recessions are painful in the short term, they bring long-term benefits by clearing out inefficient businesses, encouraging innovation, and correcting speculative bubbles and economic imbalances like excessive debt and inflated asset prices. Recessions also help ease inflationary pressures by reducing demand and promote more sustainable financial practices. Ultimately, they lay the foundation for healthier, more stable economic growth despite the immediate challenges. But maybe I am wrong, what do I know.... :)

[GregArmstrong]

How about lower rents, food, gas, etc, this means nothing!

[ArenAurelius]

Chronic Inflation is not going away. Why?

[dizzykids]

The inflation numbers are only so low because of all the people they have brought here in the last two years. If you add a million newcomers, that's a 3 percent increase in the countries population in 2 years. That has a huge effect on inflation numbers as the money is now in more hands and chasing more goods. But its has no real effect on prices. Its temporary. Lower rates will send inflation higher this year.

[cyb_structure]

12.9k views out of 41M tells you all you need to know.

...

[DeeSmith]

Keep cookin them books like you're a Nortel accountant...

[grandmufftwerkin]

Imagine where we'd be if Justin's government didn't pursue such disastrous fiscal policy.

[KM-srcc]

The consumer prices have not come down, despite the (false) CPI report.
Brace for $3.00 (if not more) gas prices at the pumps by Christmas & New Year's Eve, followed by (Jumbo) Inflation and (Jumbo) Rate Hikes (in 2025).
Global Economic downturn is coming, and so is Global Inflation on the rise again.
The Bank of Canada is well aware of the geopolitical instability in West Asia, one of the main reasons for the rate cuts at the moment but the key question is, HOW LONG will the low rates last?

[Laomai]

More I watch, more I think I am watching bad comedy.
Global News must bring him to answer to economic experts.
Really,

[ramstrong]

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