Bank of Canada announces reduces interest rates coinciding with the rise in gasoline prices

zahraa ahmed - | World News

The Governor of the Bank of Canada announced the start of lowering interest rates in the coming period, especially after the Canadian inflation rate reached close to the 2.9 level, and gasoline prices rose.

Canada's inflation rate may remain close to 2.9%

During a speech before the House of Commons Finance Committee, Governor Tiff Macklem of the Bank of Canada confirmed that the inflation rate in Canada may remain close to the level of 2.9% over the next few months. This is especially true in light of the rise in the price of gasoline, as reported by the Reuters news agency.

Reducing interest rates

Additionally, an official from the Bank of Canada explained that it is anticipated that the bank will start lowering interest rates before inflation reaches 2%. However, he also explained that if the Bank of Canada lowers interest rates and this begins to weaken the performance of the Canadian dollar, the Bank of Canada may take this into consideration when deciding whether or not to lower interest rates.

Continuation of the recent decline in core inflation

It is highly improbable that interest rates will return to the levels that existed prior to the implementation of COVID-19. Furthermore, the Governor of the Bank of Canada stated that even if the Bank of Canada does begin to reduce interest rates, it is likely that this will be done in a manner that is somewhat gradual. As an additional point of interest, Tiff Macklem reaffirmed that the Bank of Canada is seeking reassurance that the recent decline in core inflation will continue.

Statements of the Governor of the Bank of Canada

It is also noteworthy that the Governor of the Bank of Canada has recently made some significant statements concerning the direction of monetary policy and the independence of the central bank from its American counterpart. This is significant because the two institutions are experiencing slightly different economic conditions. The following are some of the points that Macklem explained in this regard:

  • The business regulations established by the Federal Reserve of the United States are not obligatory for Nick Canada.
  • There is a strong possibility that the Bank of Canada will be able to reduce interest rates.
  • It is anticipated that the growth of the GDP will reach 1.5% in 2024, and then 2.0% in both 2025 and 2026.
  • Recent economic data that has been made public since January has provided the Bank of Canada with additional evidence to support its belief that inflation will continue to fall.
  • As of right now, the Bank of Canada anticipates that core inflation will continue to gradually decrease.
  • Canada's economy appears to be expanding at a faster rate than before.
  • It would appear that monetary policy is beginning to make its way onto the economic scene.
  • In contrast to the Federal Reserve in the United States, the Bank of Canada is not required to take any action.

There is a good futures market

For her part, First Deputy Governor Carolyn Rogers confirmed during a press interview that it is not necessarily with the intention of saying that you should stop doing this because there is some value in having a good futures market. You create liquidity in normal times.

At the same time, Caroline added that the measure that we hope will come out of our side and that we are presenting and talking about is for these institutions to conduct stress tests and ensure that their margins are large enough to take into account the large fluctuations in prices.

It is worth noting that reports on financial stability issued by the Central and Private Banks indicate that the financial leverage obtained by asset managers through borrowing in the repo market has increased by about 30 percent in the past 12 months.

About Author

zahraa ahmed
zahraa ahmed
66 Total posts


Read Also

World News
Border workers in Canada go on strike over poor wages

Major disturbances are taking place at the Canadian border, after major disturbances from border workers who complain about poor salaries.

World News
The Canadian Meteorological issues a storm and tornado warning

According to meteorologists, this year's severe hurricanes and storms off Canada's east coast are a result of the Atlantic Ocean's record-high water temperatures.

World News
Schengen visa fees to increase by 12% starting June 11th

The Schengen visa, which facilitates travel across 27 European countries, including popular tourist destinations like France, Germany, Italy, and Spain, is set to become more expensive starting June 11.

World News
Canada announces new permanent residency options for international students

For international students wishing to obtain permanent residency in Canada, as it is considered the cheapest way to work in Canada, how can foreign students use study permits as bridges to move from their temporary residency status to permanent...

World News
Canada issues widespread warnings due to a Potential tornado "surreal" hitting these areas

Environment Canada has warned residents in Eumarket, Bradford, Aurora, East Gwillimbury, Georgina, Bradford and West Gwillimbury. She warned residents: “This is a dangerous situation that may threaten their lives.”

World News
Canada: Afghan translator seeks $2.75 million in damages for sexual assault by federal employee

A former Afghan translator has sought $1.75 million from a federal employee and $1 million from the Government of Canada for punitive damages and mental anguish for her sexual and verbal assault.

World News
The best personal loans for residents of Canada 2024

Explore the world of personal loans in Canada. Learn how they work, common uses, factors to consider, and tips for securing the best loan for your needs. Navigate the application process with confidence and make informed financial decisions.

World News
A 16-year-old boy killed his parents and sister after row over mobile phone

In a shocking turn of events, a 16-year-old Brazilian boy, driven by frustration over having his cell phone confiscated, committed a heinous act by shooting and killing his parents and sister in their family home.

World News
Canada reveals the reasons for refusing to issue a work permit

Is your Canada work permit stuck in application purgatory? We decode the reasons behind rejections and provide a roadmap to overcome them. Get expert tips to finally unlock your Canadian work adventure!

World News
UK Prime Minister Rishi Sunak Announces General Election for July 4

Rishi Sunak has officially announced that the next UK general election will take place on July 4, 2024. The announcement came unexpectedly during a statement made from the doorstep of 10 Downing Street in London.

World News
Australia announces the imposition of additional amounts on international student visa applications

The government in Australia announced the imposition of additional sums of money as part of the requirements for obtaining a visa for international students in Australia, as part of the Australian government’s recent decisions that aim to reduce...

World News
Bank of Canada warns homeowners not to renew their mortgages by 2026

The Bank of Canada cautioned Thursday that many homeowners who took out mortgages during the pandemic, when interest rates were virtually nonexistent, may soon have to cope with the fallout when those loans mature.

World News
3 European countries announce their official recognition of Palestine amid Israeli anger

Extreme anger struck the Israeli government after three European countries formally recognized the State of Palestine on May 28.

World News
London-Singapore flight hit by severe turbulence, leaving one dead & 30 injured

One person died and many others were injured after a Singapore Airlines aircraft from London experienced violent turbulence.

World News
India Meteorological Department issues red alert for heat wave in Delhi

Delhi and several other cities in North India find themselves in the grip of intense heatwaves, marking a challenging meteorological episode that demands immediate attention.

World News
UAE Meteorology announces the weather conditions this week and hotter days

The National Centre of Meteorology predicts that this week will bring greater daytime temperatures and muggy evenings to the United Arab Emirates.

World News
Iran Confirms Raisi Death; Mohammad Mokhber set to become interim President

Iran's President Ebrahim Raisi met a tragic end in a helicopter crash, confirmed by Iranian state TV on Monday.

World News
China introduces a 15-day visa-free entry for cruise tourists

Chinese officials have declared that cruise ship passengers would no longer need visas to enter the country.

World News
Britain announces new visa laws scheduled to be implemented this year

The British government announced an increase in Al-Rehab’s minimum requirements for obtaining a skilled worker visa, as several international media outlets reported today.

World News
Breaking News: Delhi Airport Foils Gold Smuggling Attempt from Dubai!

In recent events at the Indira Gandhi International Airport (IGIA) in New Delhi, two passengers hailing from Dubai found themselves in legal trouble after customs officials intercepted them on suspicion of smuggling gold.

World News
Canada announces new restrictions on permanent resident visas and foreign workers

Immigration and Asylum Canada has announced new restrictions related to permanent resident visas in Canada.

World News
India: Plane make emergency landing post engine catch fire, no injuries reported

On a recent morning, an Air India Express flight headed to Kochi had to make an emergency landing soon after departing from Kempegowda International Airport in Bengaluru.

World News
The most powerful passports in Africa 2024

Despite the fact that borders are open, African passports have limited global mobility.

World News
Canada issues visas and residence permits for these categories starting next week

The Department of Immigration, Citizenship and Refugees in Canada announced the start of issuing invitations to sponsor PGP parents and grandparents who have permanent residency in Canada.

World News
Australia announces a new visa to live there

With effect from July 1, 2024, Australia's Temporary Graduate Visa (Subclass 485) program will undergo major modifications as part of the government's effort to improve the assimilation of foreign students into the workforce.

World News
Spain open its doors to everyone for issuing residence permits starting May 20

The Ministry of Immigration in Spain has announced the start of a more favorable application for workers from other countries, as simplified procedures for issuing individual residence and work permits will begin to be issued as of next May 20.

World News
Russia announces temporary closure of two airports over a drone threat

After enduring substantial devastation on its own soil due to prolonged bombardments spanning over two years, Ukraine has declared its intent to escalate the conflict onto Russian territory.

World News
Canada announces suspension of railways in some areas due to wildfires

The Canadian Railways Authority announced the suspension of network services in some Canadian regions as a result of the forest fires.

Indonesia Offers Dual Citizenship to Attract Overseas Workers