Bank of Canada Lowers Rates to 4.75%, First G-7 to Ease Policy

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Source: WOLF STREET
TL;DR Summary

The Bank of Canada has cut its policy interest rate by 25 basis points to 4.75% due to easing inflation and slower economic growth, while continuing quantitative tightening. The central bank remains cautious, monitoring inflation risks and economic indicators closely, and may consider further rate cuts if inflation continues to decline towards the 2% target. The effectiveness of rate hikes in Canada compared to the US is partly attributed to the structure of Canadian mortgages, which more directly impact existing borrowers.

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