Interest rate change? Bank of Canada announcement to come

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Interest rate change? Bank of Canada announcement to come

OTTAWA-

To cut or no cut – that is the question the Bank of Canada will answer this morning when it announces its latest interest rate decision.

Forecasters generally expect the central bank to cut its benchmark interest rate by a quarter of a percentage point. This would be the first rate cut in more than four years.

The Bank of Canada’s key interest rate is currently at five percent, the highest level since 2001.

Economists believe that the noticeable slowdown in inflation and economic weakness justify a cut in interest rates.

If the Bank of Canada decides to lower its key interest rate, it would be one step ahead of some other central banks, including the US Federal Reserve.

Governor Tiff Macklem is scheduled to hold a press conference to speak to the media about the decision.

CTVNews.ca will broadcast the press conference LIVE at 10:30 a.m. ET.

This report by The Canadian Press was first published June 5, 2024.