The post Bank of Canada expected to deliver sixth interest-rate cut in a raw appeared on BitcoinEthereumNews.com.

Bank of Canada (BoC) is expected to cut its policy rate by 25 bps. The Canadian Dollar remains on the defensive against the US Dollar. Headline inflation in Canada remains below the bank’s 2% target. The BoC will also release its Monetary Policy Report (MPR). The spotlight is on the Bank of Canada (BoC) this Wednesday, with widespread expectations that it will lower its policy rate for the sixth meeting in a row. This time, however, the buzz surrounds a potential 25-basis-point cut—a smaller move than in the previous couple of gatherings—which would bring the benchmark rate down to 3.00%. Meanwhile, the Canadian Dollar (CAD) has embarked on a consolidative phase since mid-December, looking to stabilise following yearly lows north of the 1.4500 level vs. the US Dollar (USD), and the sharp depreciation that kicked in along with the so-called “Trump trade” back in October. Canada’s inflation story adds an intriguing layer to the BoC’s rate decision. December marked the second consecutive pullback as the annual inflation rate, measured by the headline Consumer Price Index (CPI), dipped to 1.8%. Although the BoC’s core CPI edged up last month, it remains below the central bank’s goal. Further easing appears on the cards Despite the anticipated rate cut, the Bank of Canada is expected to maintain a bearish outlook. This sentiment comes against the backdrop of easing inflation, a softening labour market and GDP hovering close to the bank’s most recent forecasts. In the BoC’s Business Outlook Survey published on January 20, Canadian businesses are cautiously optimistic about the year ahead. They expect better demand and stronger sales, thanks in part to recent rate cuts. However, many are keeping a wary eye on potential fallout from upcoming United States (US) policies. According to the Minutes released on December 23, the BoC’s decision…

---

Filed under: News - @ January 29, 2025 9:26 am