Bank of Canada Cuts Cash Rate

The Bank of Canada (Reserve Bank) has trimmed its Policy Rate by 0.25% to 4.75%

It's the first G7 country to cut interest rates in this cycle.

The BoC Policy Rate followed a very similar trajectory to the Reserve Bank of Australia Cash Rate. BoC went from 0.25% in March 2022 to a peak of 5%. RBA went from 0.10% in March 2022 to 4.35% today.

BoC sees inflation as coming under control and is adjusting settings accordingly.

Why is this important to Australia? Canada is economically pretty similar to Australia and sits in the group of the 7 most advanced economies (the G7). This rate move from the BoC helps set the tone for future global interest rate movements.

The RBA will take note of this.

The RBNZ should certainly take note of this move! The NZ economy is struggling, but the RBNZ appears intent on heaping more misery.