Canadian central bank lowers benchmark interest rate to 2.5%
The Bank of Canada made a significant move on Wednesday, lowering its key interest rate from 2.75% to 2.5%. This is the first interest rate cut by the Bank since March, and analysts widely expected that another reduction would follow, with many betting on at least one more cut of the same magnitude before the end of the year.
The decision comes as the Canadian economy is experiencing a significant slowdown, with unemployment rates on the rise for months. In fact, the second quarter saw the economy contracting, a concerning development for the Bank of Canada. The consumer price index (CPI) up 1.9% year-over-year in August, right in the middle of the Bank's target range of 1% to 3%.
The rate cut is aimed at stimulating economic growth and helping to alleviate the impact of rising unemployment. However, it's important to note that the move could also increase the risk of inflation in the future.
Panic among young specialized practical nurses due to unemployment is another concern. Despite being told they were needed, many find themselves without jobs, leading some to feel they were trained for nothing.
On a different note, the Federal Reserve, the United States' central bank, is expected to announce a potential rate cut later this afternoon. The Federal Reserve has kept its key interest rate within a narrow range of 4.25% to 4.5% since last year.
In other news, a Montrealer was acquitted of theft during a sexual encounter. The case, which garnered significant attention, saw Judge Ann-Mary Beauchemin raise a reasonable doubt.
Finally, the concealment of bruises on President Trump has caught the attention of observant observers. However, this incident is not directly related to the Bank of Canada's decision and the state of the Canadian economy.
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