Bank of Canada cuts interest rate to 0.75%
Sliding oil prices leads to BoC shocker
MoneySense at the MoneyShow: ETFs & Investing Strategies
Here’s how to get your free ticket to attend the MoneyShow virtual expo.
OTTAWA – The looming economic threat of sliding oil prices is forcing the Bank of Canada to unexpectedly cut its trend-setting rate to three quarters of a percentage point from one per cent.
The central bank’s announcement follows the stunning nose dive in crude prices since the summer.
The bank says the price collapse poses considerable uncertainty for economic growth in the oil-producing nation.
It is the first time the bank has moved its overnight rate in either direction in nearly four and a half years.
Most economists had been predicting the bank to stand pat on the interest rate today and hike it late this year or in early 2016.
But the bank says falling oil prices threaten to overshadow signs of economic life spotted outside Canada’s weakening energy sector — such as rising foreign demand, a boost in exports and job growth.
The Bank of Canada’s concerns over the oil slump come as some Canadian industries reel from the sharp plunge in crude prices, which are down more than 55 per cent since last June.
The decline in oil prices is also expected to shave billions of dollars from the bottom lines of federal and provincial governments.
Last week, the federal government took the rare step of delaying the budget until at least April, so it could assess the effect of tumbling crude.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Nvidia’s earnings: Blackwell AI chips play into (another) stock price rise
Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips.
Bitcoin approaches USD$100,000 as post-election rally continues
The world’s biggest cryptocurrency topped USD$98,000 on Nov. 21. As it inches ever closer to six figures, investors wonder:...
Canada’s inflation rate increased to 2% in October
Canada’s inflation rate rose to 2% last month, up from 1.6% in September, but a December interest-rate cut is...
Inflation is on target in Canada, so why is food (and other stuff) still so expensive?
Why Canadians are still feeling the squeeze of high food costs, and what to do about it.
Deal or no deal: What to know before shopping Black Friday and Cyber Monday sales
If you’re one of the many Canadians looking for Black Friday and Cyber Monday discounts, here’s how to know...
Where are rent prices headed in Canada?
A new Desjardins report predicts rent inflation will slow in the next few years.
Couldn’t get Eras Tour tickets? Industry practices, lack of competition could be to blame
High demand has made it challenging to get tickets for Taylor Swift and other big artists in Canada, and...
Suncor Energy boosts dividend, earnings rise to $2.02 billion in Q3
The oilsands giant will return all excess cash to shareholders after hitting debt target early.