By Glen Hallick
Glacier Farm Media MarketsFarm – The following is a glance at the news moving markets in Canada and globally.
- The Bank of Canada slashed its key interest rates by 50 basis points on Wednesday, lowering its overnight and deposit rates to 3.25 per cent and its bank rate to 3.75 per cent. The cut met most analysts’ expectations. Weaker than expected unemployment data for November outweighed the two per cent inflation in October. As well, the BoC said the Canadian economy is growing at a slower pace than it projected.
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- Canadian Prime Minister Justin Trudeau will meet online with the country’s 13 premiers on Wednesday. They will further discuss the tariff threat made by United States President-elect Donald Trump. Previously, Trump stated he intends to slap a 25 per cent tariff on all U.S. imports from Canada and Mexico on his first day as president. The virtual gathering of Canada’s first ministers will be the first since Trudeau met with Trump at the end of November.
- Reports on Wednesday said China could weaken its yuan in the face of the tariff threat posed by Trump when he returns to the White House. The President-elect said he will impose a 60 per cent tariff on all U.S. imports from China. The possible move by China would allow its economic stimulus plans to bolster its sluggish economy.
- Inflation in the United States bumped up in November the Bureau of Labor Statistics reported on Wednesday. The consumer price index rose to an annualized rate of 2.7 per cent last month, up from 2.6 per cent in October. Price increases for food, energy and shelter pushed inflation upward. The higher inflation led some analysts to predict the U.S. Federal Reserve will cut its key interest rates a week today.
