Bank of Canada Cuts Rate by 50 Points

Above: Tiff Macklem, governor of the Bank of Canada, during a news conference in Ottawa, Ontario, Canada, on Wednesday, Dec. 11, 2024. Image copyright: David Kawai/Contributor/Bloomberg via Getty Images

The Facts

  • The Bank of Canada (BOC) reduced its benchmark interest rate by 50 basis points to 3.25% on Wednesday, marking the fifth consecutive cut since June and bringing total reductions to 175 basis points in 2024.

  • BOC Gov. Tiff Macklem indicated that future rate cuts would follow a more gradual approach, as monetary policy no longer needs to be "clearly in restrictive territory" with inflation holding steady at the 2% target.

  • The Canadian economy grew by only 1% in the third quarter, though it's up by 1.5% from a year ago. Meanwhile, unemployment rose to 6.8% in November, up from 6.5% the previous month.


The Spin

Left narrative

With inflation at 2% and rate cuts boosting household spending, Canada’s economy remains resilient. Despite slower GDP growth and softer job markets, the country's fundamentals are strong, including a rise in companies hiring workers. Historically, Canada has weathered US tariff threats, including Trump’s exaggerations and provocations. Bilateral economic integration ensures Canada will withstand such pressures while maintaining stability.


Right narrative

Trudeau's government continues to gaslight the country into thinking his money-printing schemes aren't destroying the economy. The budget deficit is also about to worsen as the Liberals introduce costly measures like GST and HST waivers, projected to cost over $1.5B, and $250 checks that will cost over $4B. Between shrinking economic growth and a bloated budget, Trudeau has a duty to call an election so the people can voice their grievances.



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