BoC to announce interest rate decision today as many forecasters anticipate rate cut

By The Canadian Press on June 5, 2024.

OTTAWA – To cut or not to cut – that is the question the Bank of Canada will answer this morning as it announces its latest interest rate decision.

Forecasters are widely expecting the central bank to lower its key interest rate by a quarter of a percentage point, which would mark the first rate cut in more than four years.

The Bank of Canada’s key interest rate is currently sitting at five per cent, the highest it’s been since 2001.

Economists say the noticeable slowdown in inflation as well as economic weakness justify a rate cut.

If the Bank of Canada opts to lower its policy rate, it would be moving ahead of some of its central bank peers, including the U.S. Federal Reserve.

Governor Tiff Macklem is scheduled to hold a news conference at 10:30 a.m. eastern time to speak to media about the decision.

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

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