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Global Markets: BoC follows through on expected rate cut

Reading Time: 2 minutes

Published: 6 hours ago

By Glen Hallick

Glacier FarmMedia | MarketsFarm – The following is a glance at the news moving markets in Canada and globally.

  • The Bank of Canada cut its key interest rates by 25 basis points on Wednesday, bringing them to 2.25 percent. As well, the BoC forecast Canada’s gross domestic product to increase 1.25 per cent in 2025, then 1.1 per cent growth in 2026 and 1.6 per cent in 2027. Also, the central bank projected inflation to remain around 2.5 per cent. The BoC’s next rate announcement is set for Dec. 10.
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  • The United States Federal Reserve is scheduled to announce its latest interest rate move at 1 p.m. CDT on Wednesday. Analysts widely expect a quarter-point cut. The Trump administration has heaped a great deal of pressure on Fed chair Jerome Powell to drop rates while Powell has stood firm in the central bank’s independence. Reports said the Fed’s board is divided between freezing rates and cut them further.
  • Jamaican officials continued to assess the widespread damage from Hurricane Melissa on Wednesday after the country was hit hard on Tuesday. Although reduced from Category 5 to Category 3, Melissa slammed into Cuba today with still powerful winds of 165 km/h.
  • Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump as they sat across from each other at the first dinner during the APEC forum in South Korea on Wednesday. However, reports are mixed as what transpired. Global reported Carney said “a very good conversation. Always pleasant,” while the CBC said the two leaders appeared to have virtually nothing to say to one another.  

Chinese President Xi Jinping is set to have separate discussions with Trump and Carney at the APEC summit on Thursday. Xi will talk trade with each leader, with tariffs as the focal point along with agriculture. China has purchased little, if any, U.S. soybeans and Canadian canola in recent months.

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