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2025-09-12 21:20:04
[Eagle Soars! Bank of Canada Rate Cut Signals a Turning Point in Market Sentiment] ⑴ Nearly 80% of economists predict the Bank of Canada will cut its first interest rate this year on September 17th, lowering the key rate by 25 basis points to 2.50%. This is highly consistent with market expectations and indicates that market concerns about an economic slowdown have taken hold. ⑵ Canada saw a sharp drop of 65,500 jobs in August, with the unemployment rate rising to a nine-year high. Combined with a 1.6% contraction in economic activity in the previous quarter, these weak data undoubtedly provide strong support for the Bank of Canada's decision to cut interest rates, especially amid market concerns raised by Trump's tariff rhetoric. ⑶ Over 70% of economists expect the Bank of Canada to cut interest rates by at least 50 basis points this year, indicating strong market expectations for future monetary policy easing, which may have a positive impact on market sentiment. ⑷ While core inflation data remains sticky, overall inflation has stabilized within the target range of 1% to 3%, providing the Bank of Canada with room to make discretionary decisions as it assesses labor market and economic activity weakness. ⑸ The market is generally paying attention to the Fed's moves. It is expected that it will cut interest rates for the first time this year on September 17. The Bank of Canada's move may lead the trend of easing monetary policy among G10 countries and inject new vitality into the market.
