"Welcome news": Bank of Canada governor says it's "reasonable" to expect more interest rate cuts

Governor Tiff Macklem held a press conference on Wednesday, after the Bank of Canada lowered its benchmark interest rate by a quarter-percentage point, marking a significant turning point in the central bank’s efforts to tame inflation.
The Bank of Canada’s policy rate now stands at 4.75 per cent following six consecutive holds in previous meetings.
Homeowners with variable-rate mortgages, as well as Canadians with other kinds of debt tied to the central bank’s policy rate, will immediately see their interest rates drop by 25 basis points. Macklem said that the “considerable progress” made in taming inflation should be “welcome news” to Canadians.
Macklem said that if inflation continues to ease, “it is reasonable to expect further cuts to our policy interest rate.” But he added that the central bank would take its decisions “one meeting at a time.”
As the Bank of Canada expects inflation’s journey back to two per cent will be “gradual,” Macklem said the pace of rate cuts will likely be the same. In other words, Canadians should not expect the path interest rates took on the way up - the most rapid tightening cycle in the Bank of Canada’s history - to be the same pace at which the central bank lowers rates.
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[@zackd4770]

The only people benefitting from this rate cut are the transportation companies moving all of our young Canadians across the border to the US.

[@benny871]

and those young Canadians becoming American citizens are benefitting too.

[@1ABNDT]

🤣😂 Trudeaus BOC theater

[@24theMoney]

Enjoy the CDN Peso folks.

[@aiqueenla2786]

He is not very good with economic views

[@DarrylWolk]

It is not good news. It means the economy has slowed and it has. It means the BOC is throwing in the towel on inflation and housing affordability. It also reduces the value of the Canadian dollar that puts additional pressure on inflation. Most will pay more due to the inflation spike than they will from what ever is saved on debt servicing charges with a 0.25% cut.

[@mtrest4]

They can always lie about the rate of inflation, as they have. CPI numbers are all fake and have been so since 2000 and especially since 2008.

[@publicservice9683]

Can you tell the government to cut the carbon tax so you can keep the inflation down

[@mtrest4]

The intent is not to keep inflation down but up... ...and then claim inflation is low. The above steals the value of your savings and wages and transfers it to banksters.

[@brettarogers144]

French translations ruined this! The world of business is done in english! Lets make things easier on the ears and in general!

[@namkebanyanklariti]

I still maintain that this guy needs to be fired. I'm not an economist just a common man with streets smarts and even I know that he needed to start off with a 50 basis points interest rate deduction to get anybody off the sidelines. A minimum of 75 basis points is needed to get anybody off the fence. It just goes to show you that the people who get the big jobs are clueless about what is actually happening on the streets; they don't have an ear to the ground from those ivory towers. Elitism ruining Canada. Does he honestly think that 25 or 50 basis points can get businesses to stop laying off and be bold to borrow more money to invest in tools, machinery, and innovation as he puts it to increase GDP and productivity? The interests these businesses are already paying on loans and lines of credits and mortgages are staggering! That speech he gave just before the rate change announcement recently fell on deaf ears.

[@mtrest4]

The market should be setting interest rates, not this clueless guy. The Bank of Canada these days is a country club for private banks privatizing profits and socializing debt / losses.

[@Dehssiel]

i cant understand a single thing.. What the hell with the translator

[@mtrest4]

It's a load of nonsense bro. The only thing you need to know is your cost of living is going up and standard of living is going down 👎 😞

[@mtrest4]

The economy has performed horribly with Tiff Macklem's poor decisions. The market should determine rates, not thus guy.

[@aiqueenla2786]

Next target is Canadian dollar- decrease hence goods increase so is inflation, it will hurt the inflation control 😅, there is no free lunch and they should wait a little bit longer

[@mtrest4]

They can always lie and claim inflation is low.

[@BillInnes]

When interest rate goes down, more people qualify for a mortgage, so demand for homes increases and prices go up. When interest rate goes up, the cost of a mortgage for a home goes up, so its again less affordable. The root problem is: Too many people chasing too few homes.

[@mtrest4]

The people have no money.

[@jimmorrison1860]

Ask them why the bonuses , when everyone else is just getting by

[@mtrest4]

Bonus... for wrecking the economy.

[@CalmPlains]

Good grief, fire your sound person.

[@Joshua-zw7jl]

I was able to listen for about 2 minutes before shutting this off. Why on Earth would you have a translation directly overtop of the press conference remarks. Just post two separate videos...

[@philip796]

Finally

[@ArenAurelius]

You cannot lie to us anymore. We have lost the economic war with Russia. Big Time!

[@ktefccre]

Thanks for uploading the full press release

[@cameronwilsonmortgageagent1160]

Tiff - Love you buddy! Good work. Glad I was of service :)

[@shawner1989]

its a start i guess but not enough im sick of over paying for my tiny house

[@cindycreateforlife]

Thanks for talking over each other so it was a dogs breakfast to listen to!

[@LanceBryantGrigg]

I would love to be this guy. To deal with so many stupid questions that re-iterate the already existing response and have the patience to not be a dick while doing it. If I had a dollar for every single time I heard "we are pretty clear" - I could pay off my house and not worry about these rates.

[@ktefccre]

😃👍 you can do it if you try 👏 He has a bachelor, master, and phd in economics. Spent the last 40 years working at the BoC from the bottom up. Never too late to start. Good luck!

[@LanceBryantGrigg]

@@ktefccre I think you took me a bit to serious. Trust the internet.

[@mtrest4]

​@@ktefccre You could be a taco roller and still do his job. All he does is raise or lower interest rates and print money -- and he still gets it wrong !

[@junvillagracia2628]

Why are Canadians experiencing higher interest rates compared to the USA? Previously, our interest rate was 7.99%, while the USA’s was 0%. What actions has the Canadian government taken so far?

[@georgehiotis]

It should reasonable for Canadians to expect reasonable, predictable, and stable rates for principal residences. How does that sound?

[@CJT49]

Bank of Canada, with the reaction time of a sloth

[@مردمبیدار]

He made many canadians losing their equity in their properties. He is taking sibs every 5 min. What a sham show.

[@CJT49]

Who cares, boomer problem

[@مردمبیدار]

Mr. Banknof Canada: I must buy everything four times more expensive since 4 years ago, but I must sell my property price like 4 years ago. It means you are stealing my equity in my property. Everything can become more expensive, but real estate? Doing this, you are making homeowners become homeless in future.

[@Aaron-rw3lv]

What is 4 times more expensive?

[@_netscapenavigator]

Gas price in BC in 2020 = $1.259/litre Gas price in BC in 2024 = $1.899/litre "everything four times more expensive" is hogwash

[@GuyBuddy-i6q]

Why is the hindu modi supporter anticanadian asking hateful questions

[@GuyBuddy-i6q]

Lots of people are checking out of society

[@mtrest4]

Where are they going 🤔

[@gagandhaliwal9391]

Solid news!

[@charlenefrench5404]

No this means our dollar loses its value and inflation gets higher.