The Bank of Canada has lowered its key interest rate by 25 basis points to 4.25 per cent.
It’s the third cut since June, and the first time the central bank has posted three consecutive reductions since the global financial crisis in 2009. Governor Tiff Macklem says if the economy continues to improve, Canadians can expect more rate cuts later this year. The next rate update is scheduled for Oct. 23.
In remarks to reporters, Macklem said the Canadian economy grew by 2.1 per cent in the second quarter of this year. The gain, led by government spending and business investment, was slightly higher than the central bank’s July forecast.
“That a healthy rebound from the near-zero growth we had in the second half of 2023,” said Macklem.
The bank’s July forecast is predicting even growth in the second half of this year and inflation is expected to ease, according to Macklem.
“We are determined to get inflation down to the two per cent target, and we want it to stay there,” said Macklem. “The economy functions well when inflation is around two per cent.”
Canada’s employment rate remains a concern for the central bank with the unemployment rate rising to 6.4 per cent in June and staying there in July. According to Macklem, the uptick was mainly seen amongst youth and newcomers to Canada.
“Business layoffs remain moderate, but hiring has been weak,” said Macklem. He also noted that slack in the labour market is expected to slow wage growth.
According to the Bank of Canada, the global economy expanded by about 2.25 per cent in the second quarter of 2024. Economic growth was stronger than expected in the United States led by consumption, however the American labour market has slowed.
It’s widely expected the bank will lower the overnight target rate again at its scheduled meeting in late October.
More details to come.
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The Bank of Canada has cut its policy interest rate for a third consecutive time. Governor Tiff Macklem says if the economy continues to improve, Canadians can expect more rate cuts later this year.
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A car struck a cyclist during a demonstration at Portage and Main Wednesday afternoon.
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Researchers in London, Ont., say they were able to detect awareness in a comatose patient with a brain injury -- a finding they say 'opens the door' to providing better care with the hope of more accurately predicting critically injured patients' prognosis for recovery.
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Some Canadian banks say they're starting to question how aggressively they go after mortgage customers amid intense competition.
A Brampton resident is one of the two people facing dozens of human trafficking charges following a 10-month-long investigation that started in eastern Ontario.
A car struck a cyclist during a demonstration at Portage and Main Wednesday afternoon.
The gunman who opened fire inside Apalachee High School in Winder, Ga., is a 14-year-old male, Georgia officials confirmed Wednesday.
The White House is signalling an openness to blocking the acquisition of U.S. Steel by Nippon Steel, as a government review of the proposed takeover by the Japanese company is on the cusp of ending.
A damning report on a deadly London high-rise fire concluded Wednesday that decades of failures by government, regulators and industry turned Grenfell Tower into a 'death trap' where 72 people lost their lives.
By his own account, Ohio Sen. JD Vance’s 2019 conversion to Catholicism provided a spiritual fulfillment he couldn’t find in his Yale education or career success.
U.S. Vice-President Kamala Harris proposed increasing the long-term capital gains tax rate to 28 per cent for wealthy Americans during an economic speech in New Hampshire on Wednesday, breaking with the policy laid out by President Joe Biden in his 2025 budget by suggesting a lower rate.
Israeli Prime Minister Benjamin Netanyahu said Wednesday that Israel must keep open-ended control of Gaza's border with Egypt, digging in on his stance on an issue that has threatened to derail ceasefire efforts.
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As Prime Minister Justin Trudeau digs in his heels and pledges to stay on as Liberal leader despite dwindling public support, some LGBTQ2S+ activists say he is putting queer and gender diverse people at risk.
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Researchers in London, Ont., say they were able to detect awareness in a comatose patient with a brain injury -- a finding they say 'opens the door' to providing better care with the hope of more accurately predicting critically injured patients' prognosis for recovery.
Reggie Garrett weeps as he speaks about the Parkdale Queen West Community Health Centre, which houses the supervised consumption site he uses. It is one of 10 such sites slated for closure after the province announced new rules.
A 'remarkable' Pictish ring with 'an intricate setting' was discovered in Scotland by an amateur archeologist after being buried for more than 1,000 years.
Herds of salamanders are crossing the road in western Manitoba by the dozens.
Boeing will attempt to return its problem-plagued capsule from the International Space Station later this week -- with empty seats.
The group of authors in contention for this year’s $100,000 Giller Prize has been whittled down to 12, but one name is notably absent from the list: Scotiabank.
A prosecutor has asked a New Mexico judge to reconsider the decision to dismiss an involuntary manslaughter charge against Alec Baldwin in the fatal shooting of a cinematographer on the set of a Western movie, according to a court filing made public Wednesday.
A long-running battle over the Guess Who name has come to an end.
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Having recently turned 36, CNN Style producer Jacqui Palumbo asks readers if she is too old to still be wearing a crop top.
At the U.S. Open currently underway in New York, a single cocktail will surpass US$10 million in sales before the tennis grand slam event ends Sept. 8.
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An Ontario man said he couldn't believe an electric car he bought three years ago for $20,000 would need a new battery at a cost of more than $33,000.
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A British Columbia woman who unsuccessfully sued her downstairs neighbour last fall for making too much noise has now failed in a bid to sue her upstairs neighbour for being too loud.
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NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that’s helping keep Prime Minister Justin Trudeau’s minority Liberals in power.
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