The Bank of Canada reduced it’s rate to 3.25%, with the Bank Rate at 3.5% and the deposit rate at 3.25%.
Global & Domestic Outlook:
– Global: US economy shows strength, while Europe and China face mixed growth signals. The Canadian dollar has weakened amid a strong US dollar.
– Canada: GDP grew by 1% in Q3, below projections, with weaker business investment and exports. Consumer spending and housing have improved due to lower interest rates.
Policy & Inflation:
– New policies, including changes to immigration targets and GST adjustments, will influence economic dynamics.
– Inflation remains near 2% and is expected to stay close to the target.
The next policy announcement is on January 29, 2025.