The central bank, which hiked rates to a 20-year high to fight soaring prices, has now cut four times in a row since June. Inflation in September sank to 1.6 per cent, below the two per cent target. | Reuters photo

More interest rate cuts expected after recent reduction

OTTAWA (Reuters) — The Bank of Canada reduced its key benchmark rate by 50 basis points last week to 3.75 per cent, its first bigger-than-usual move in more than four years, and hailed signs the country has returned to an era of low inflation. The central bank, which hiked rates to a 20-year high to […] Read more


The problem with the decision, according to one analyst, is not the fact the BOC lowered interest rates but that the magnitude of the cut was not aggressive enough given current Canadian economic fundamentals. | Getty Images

Bank of Canada must cut interest rates more aggressively

The central bank was expected to announce a 25 basis point drop in the overnight rate, but cut should have been deeper

By the time you are reading this, the Bank of Canada will likely have announced a 25 basis point (0.25 per cent – editor’s note: it was .50 per cent drop, details here) drop in the overnight interest rate to four per cent. That was the economists’ prediction before the bank’s most recent meeting. The […] Read more



The Bank of Canada met this week and was expected to cut its key rate by at least 25 basis points or more. This column was written before the bank made its announcement. | Reuters photo

Central banks ponder how fast to reduce interest rates

The latest inflation and employment reports show the Canadian economy could be cooling too fast, prompting several prominent economists to encourage the Bank of Canada to aggressively cut interest rates. The bank met this week and was expected to cut its key rate by at least 25 basis points or more. This column was written […] Read more

Most consumers say the cost of living, from food to rent to mortgage payments, has soared and it’s hard to pay the bills. | Getty Images

Inflation fight must walk tightrope amid consumer anger

Like giant cargo ships, the big economies of the world have sailed through stormy seas for several years and finally calmer water might be ahead, but the crews are in a foul mood and are not about to salute their captains. In Canada, the United States and elsewhere, the chaos from COVID-19 and the Russian […] Read more

"We are increasingly confident that the ingredients to bring inflation back to target are in place," said Bank of Canada governor Tiff Macklem. The bank reiterated that inflation should return sustainably to its two per cent target in the second half of 2025. | Reuters photo

Bank of Canada cuts interest rates

OTTAWA (Reuters) — The Bank of Canada has trimmed its key interest rate by 25 basis points for the second month in a row, bringing it to 4.5 per cent, and said more reductions in borrowing costs were likely if inflation continued to cool in line with forecasts. The central bank had kept its policy […] Read more


Today the Bank of Canada announced it would cut interest rates for the first time in four years. | Reuters photo

Bank of Canada interest rate cut to give some borrowers relief

Glacier FarmMedia – Businesses and consumers carrying debt under a variable rate should see some relief with the Bank of Canada’s decision to cut its policy rate today said Farm Credit Canada’s chief economist. “Otherwise I don’t expect the decision today to have major implications for interest rates in financial markets,” said J.P. Gervais in […] Read more

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Hope fades for cut in interest rates

OTTAWA (Reuters) — The Canadian economy expanded at an annualized rate of one percent in the fourth quarter, exceeding expectations, which should ease interest rate-cutting pressure on the central bank. Fourth-quarter gross domestic product was higher than the Bank of Canada’s expectation for zero growth and analysts’ median forecast for an expansion of 0.8 percent […] Read more