Loading ...Bank of Canada Cuts Rates By 25bps As Expected, First G7 Central Bank To Launch Easing Cycle
“If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2% target continues to increase, it is reasonable to expect further cuts to our policy interest rate. But we are taking our interest rate decisions one meeting at a time.”
As widely expected after significant dovish commentary in recent months, moments ago the Bank of Canada cut rates by 25bps from 5.00% to 4.75% as a majority of economists expected, and signaled that it is “reasonable to expect further cuts” if inflation eases.
This is the BEGINNING of a global rate cutting cycle. Tomorrow the ECB will also cut and now that the FED has stalled with all their BS, they can cut(or at least signal they will cut in July) next week. The other Central banks went first so the USD wouldn’t tank. It is going down anyway, but it is being managed and slow walked, at least for now.