Saturday, July 20, 2024

Bank of Canada interest rates and my opinion

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Bank of Canada interest rates and my opinion

The Bank of Canada cut policy interest rates for the first time in more than four years. The Bank of Canada is the first central bank among the G7 countries to cut interest rates. On June 5, the central bank announced a cut in interest rates.

Governor Tiff McClam said the central bank is more confident that inflation is moving closer to its 2 percent target. Highlighting various indicators, he said, the price has been eliminated.

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In prepared remarks for a morning press conference, McClam said it is reasonable to expect further cuts in our policy interest rate if inflation continues to decline and if our belief that it is sustainably moving toward the 2 percent target continues to increase. But in one meeting we are taking a decision regarding our interest reduction.

After the 25 percentage point cut, the central bank’s policy interest rate now stands at 4.75 percent. McClam and Senior Deputy Governor Carolyn Rogers announced the news while wearing an Edmonton Oilers pin. This pin means the Canadian Hawkeyes are headed to the NHL Finals later this week. The Bank of Canada’s interest rate cut gave Canadians some reason to celebrate, as did Weller’s run to the Stanley Cup Final.

The June 5 interest rate cut also opened a new chapter for the Bank of Canada. For the past two years, the central bank has confined itself to the task of reducing inflation. But when asked about July’s interest rate decision and whether the central bank would cut interest rates again, McClam urged reporters to be patient. He said, let’s enjoy this moment.

At the same time, federal Liberals on Parliament Hill celebrated the news. After attending the Liberals’ weekly caucus, Finance Minister Chrystia Freeland picked up the microphone and echoed McClam’s comments. He said the interest rate cut was to celebrate a moment. Canada is the first G7 country to cut interest rates. Our economic plan is working and that is really welcome news for Canada and Canadians.

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