- Bank of Canada lower its key interest rates form 2,25% to 2%.
- The move was expected by markets.
- Bank of Canada lower its key interest rates form 2,25% to 2%.
- The move was expected by markets.
02:45 PM BST, Canada - BoC Interest Rate Decision for October:
- actual 2.25%; forecast 2.25%; previous 2.50%;
USDCAD extended today's losses to around 0.2%, as the move was widely anticipated due to ongoing weakness in the labour market. Additonally, in the released statement BoC signals that it might leave the rates unchanged for some time to support the recovery of economic activity in the country.
Bank of Canada Governor Tiff Macklem flagged that tariff-related risks to economic growth are materialising in the real economy, mainly through lagging business investment and falling exports that translate into lower labour demand. The slack is expected to persists through 2027.
Macklem's words also suggest that BoC has only limited room to responds to tariff-related shocks and cannot make the economy return to its pre-tariff trajectory. This is reflected further by central bank's downward revisions to GDP growth (1,2% in 2025, 1,1% in 2026) and inflation (2% in 2025, 2,1% in 2026).
Source: xStation5
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