Sep. 17 at 4:24 PM
BoC lowers its policy rate by -25bps to 2.5%, a move widely anticipated by markets.
It's the Bank's first rate cut since March & follows 3 consecutive holds, underscoring a reassessment of the balance of risks between inflation & growth.
The Canada economy has registered 3 consecutive monthly contractions in GDP, a trend that has pushed the unemployment rate above 7% as of August. While inflation has recently stabilized (1.9% in Aug) within the BoC’s target range of 1% to 3%, the deteriorating growth outlook has clearly taken precedence
The Fed govt’s fiscal plans remain unclear & while Ottawa recently reversed most of its retaliatory tariffs on food imports—a move expected to ease future price pressures-- the overall policy environment remains complicated especially with the upcoming NAFTA negotiations & ongoing Trump Tariff Tantrums against Canada
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