The Bank of Canada made a bold move on Wednesday by cutting its key interest rate by an oversized 50 basis points, bringing the rate down to 3.75 per cent. This decision marks the fourth consecutive rate cut since June and is the largest cut made by the Bank of Canada since the global financial crisis in 2009, aside from the impacts of the COVID-19 pandemic. Governor Macklem expressed confidence in the effectiveness of the rate cut in combating inflation and creating a sense of relief for Canadians.
Macklem believes that the rate cut will stimulate spending among consumers and businesses, potentially boosting Canada’s economy. This move comes ahead of the Bank of Canada’s final interest rate decision of the year, which is scheduled for December 11th. As the country continues to navigate economic challenges, the Bank of Canada’s actions will be closely watched for their impact on the overall financial landscape.
For more information on the Bank of Canada’s interest rate cut and its implications, visit the provided link. The decision to drastically reduce the key rate underscores the Bank of Canada’s commitment to supporting economic growth and stability in the face of ongoing uncertainty.
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Video “Bank of Canada cuts key rate by 50 basis points in oversized step | FULL” was uploaded on 10/23/2024 to Youtube Channel Global News