Breaking news: Bank of Canada makes first rate cuts against inflation

Brace yourselves - after several years of steady climbing, rates are about to change course.

To quote their press release Bank of Canada reduces policy rate by 25 basis points: “The Bank of Canada today reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is continuing its policy of balance sheet normalization.”

For additional context on this history-making shift, we’re sharing a detailed article from the Financial Post below:

Bank of Canada's Tiff Macklem signals more rate cuts possible after historic shift

'We’ve come a long way in the fight against inflation' — Tiff Macklem

By Barbara Shecter, The Financial Post
Published Jun 05, 2024

Marking a significant shift in monetary policy, the Bank of Canada cut interest rates Wednesday for the first time since it launched a historic hiking cycle to combat inflation in March 2022.

The central bank set its overnight rate at 4.75 per cent, down 25 basis points from the five-per-cent level that had been in place since rates peaked in July 2023.

Read the full article on the Financial Post website

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