Bank Of Canada Considers Accelerating Rate Cuts Amid Growth Concerns

According to Odaily, Bank of Canada Governor Tiff Macklem has suggested the possibility of accelerating interest rate cuts due to increasing concerns over economic growth. Macklem indicated that if economic growth disappoints, policymakers might consider a significant rate cut of 50 basis points. The G7 economy experienced an annualized growth rate of 2.1% in the second quarter. However, there are growing concerns that falling oil prices, rising unemployment rates, and declining immigration levels could bring Canada close to stagnation. Macklem emphasized that rate setters are increasingly worried about the Canadian labor market and the potential economic impact of declining crude oil prices.