Bank of Canada Lowers Interest Rates, What’s Next For Bitcoin?
The Bank of Canada cuts interest rates by 25 basis points as inflation cools. The bank cited cooling inflation pressures and economic growth in line with previous projections. Crypto enthusiasts are keen on the markets as Bitcoin bulls look ahead for positive macroeconomic factors.
Bank of Canada Cuts Interest Rates
The Bank of Canada announced interest rate cuts on the heels of slowing inflation. In a Sept 4 release, the Bank announced its third consecutive rate cuts in line with policy projections. The move takes the policy rate to 4.25% signaling options for more cuts in the favorable factors.
“With continued easing in broad inflationary pressures, the Governing Council decided to reduce the policy interest rate by a further 25 basis points. Excess supply in the economy continues to put downward pressure on inflation, while price increases in shelter and some other services are holding inflation up. Governing Council is carefully assessing these opposing forces on inflation.”
The bank added that monetary decisions will be made based on emerging information and implications for inflation outlook. The inflation target remains at 2% with Governor Tiff Macklem stating that the policymakers will guard against the risk of a weak economy resulting in a rapid drop. Overall, the Bank of Canada noted that the economy grew in Q2 2024 due to government spending and investment business. Generally, macro factors remain under control with the global economy and key trading partners recording upticks.
What’s Next For Bitcoin?
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