Bank of Canada cuts key rate for first time since 2020

Wednesday Jun 05th, 2024

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Alright folks,. The Bank of Canada is now confident that inflation is easing up sustainably. They're leading the pack, cutting rates before the Bank of England, the European Central Bank, and the U.S. Federal Reserve.

"We've made significant progress in our fight against inflation," said Governor Tiff Macklem in Ottawa. "We're more confident now that inflation will keep moving closer to our 2 percent target."

Here’s where we stand: The inflation rate dropped to 2.7 percent in April from 2.9 percent in March. The economy grew by 1.7 percent in the first quarter of 2024, though that's a bit shy of what the bank expected.

Employment shot up by 90,000 in April, thanks mainly to part-time jobs. Even though employment growth hasn't kept pace with the working-age population, we've got enough workers to fill job vacancies now, and wage pressures are easing.

Mark your calendars, folks. The next rate announcement is coming up on July 24.


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