Bank of Canada holds key interest rate, signals June cut is in “realm of possibilities” | FULL
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Published 2024-04-10
The central bank's policy rate, which informs lending rates on key products like Canadian mortgages, remains at 5.0 per cent for the sixth straight decision.
The hold was widely expected by economists as signs indicate price pressures are easing, growth in the economy has stalled and the once-tight labour market is softening.
Bank of Canada Gov. Tiff Macklem said in prepared remarks accompanying the rate decision that recent data has given the central bank more confidence that “inflation will continue to come down gradually even as economic activity strengthens.”
Asked about whether an interest rate cut in June was on the table, he said it was “in the realm of possibilities.”
The Bank of Canada's rate tightening cycle began more than two years ago in an effort to rein in decades-high levels of inflation.
Annual inflation has since cooled significantly, last coming in at 2.8 per cent in February. That's within the Bank of Canada's target range of one-to-three per cent, but the central bank has maintained it won't ease its policy rate until it's confident price pressures will continue to decline all the way back to two per cent.
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All Comments (21)
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Two self inflicted inflation should stop !!!! Stupid. Mortgage rates and gas carbon tax !
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People spend more because inflation makes them spend more
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Tiff Macklem should be fired.
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I'm thinking to staying at home this summer because the gas price here keeps going up everyday
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They want to Push Canada to have higher unemployment rate that is crazy
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We can't count on Bank of Canada, to help Canadians & Canada be a strong country!
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grrrrr I have to renew next month and can not afford so can WE move into your house.
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Gov: We are hoping to see more job cuts until we are satisfied that we can bring the rates down...
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Imagine going on vacation this summer in the US and the CDN dollar is only worth 65 cents...rates need to go up, not down.
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Inflation in the U.S. is going up.
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Shelter is not in the basket of goods used to measure CPI so why is he bringing up shelter costs?
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When you don’t know what to do .. I guess you do nothing
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Lagging indicator - inflation in the US ticked up, Canada will follow. Rates might dip but will likely go up again or plateau for a long time. Over spending, too much unskilled labour, we don’t produce anything, government handouts. The rate of inflation has stalled but prices have not come down. We’re damned either way. Blame Trudeau.
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I love it for my GICS
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As the Canadian dollar tanks after the CPI and inflation report out of America today Tiff better get a clue and have second thoughts about any premature rate cuts.
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And fuel prices go up to see more higher inflation..
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This shows Tiff doesn't really see what is happening with inflation and is encouraging a massive recession in the Canadian economy! Any interest cuts would cause inflation to go up to 8 or 9% at the least! This is why food prices are going up again and the cost of living will skyrocket! We hope Tiff will be fired by a new prime minister coming this fall!! Since he became governor of the Canadian bank, the Canadian economy has had no rudder to guide our nation's economic growth!!!
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interest rate should be maintained until 2025
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Well I guess I need to raise my rents again. Sorry everyone blame 4 eyes over here 👈
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The +40% cumulative price increases from 2021 to 2024 are here to say FOREVER. Inflation is still going UP, but just a bit slower now.
