Statistics Canada unemployment reports

Bank of Canada Cuts Key Interest Rate to 4.5% for Second Consecutive Time

Jul 24, 2024, 01:47 PM

On July 24, 2024, the Bank of Canada reduced its key interest rate by 25 basis points to 4.5%, marking the second consecutive rate cut. The decision comes amid signs of a weakening economy, including slowing inflation, a loosening jobs market, and rising unemployment and bankruptcies. The central bank has also signaled the possibility of further easing if inflation continues to wane. This move aligns with broader trends among developed market central banks, which are also grappling with downside economic risks.