The Bank of Canada (BoC) is widely anticipated to reduce its benchmark interest rate by 50 basis points at its upcoming policy meeting on December 11, 2024. This expected cut would lower the overnight rate from 3.75% to 3.25%, marking the fifth consecutive rate reduction since June.
Economic Indicators Influencing the Decision:
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Rising Unemployment: In November, Canada's unemployment rate unexpectedly increased to 6.8%, the highest level in nearly eight years, excluding the pandemic period.This rise occurred despite the addition of 50,500 jobs, indicating that job creation is not keeping...