Oddbean

Interest rate policy in Canada and U.S. set to diverge ========== Experts predict that the monetary policy at the Bank of Canada and the U.S. Federal Reserve will diverge, potentially leading to volatility in the Canadian dollar. If the Bank of Canada cuts rates significantly below the Fed's rates, it could negatively impact the loonie and increase inflation. The Bank of Canada recently announced its first interest rate cut in over four years, while the Fed is expected to hold its key interest rate steady. Canada's economy is more sensitive to interest rates due to shorter mortgage terms and a reliance on commodities. Market watchers expect the Fed to make its first rate cut in September, but this could change depending on economic data. The Bank of Canada will continue to assess interest rate decisions based on inflation and economic conditions. #InterestRates #BankOfCanada #UsFederalReserve #CanadianDollar #Inflation #EconomicData https://www.investmentexecutive.com/news/research-and-markets/interest-rate-policy-in-canada-and-u-s-set-to-diverge/