BOC Interest Rate Cut
The Bank of Canada cut the key interest rate this morning by a further 25 basis points. The key rate is now 2.75%. Part of the BOC decision to reduce was affected by the current tariffs from U.S. and resulting retaliatory responses from Canada. The impact of same is still unknown.
The BOC in both 2023 and 2024, according to business pundits, was alerting the federal government that there were no measures in place to grow the Canadian economy. This lack of attention to Canada’s economy was apparently in place throughout Trudeau’s lengthy leadership. Business minded pundits were also speaking consistently about this.
By changing the face of the leader, the federal Liberal party is hoping to continue as the party in power, going forward. Mark Carney also advised Trudeau, and was close to his policies…as was Christya Freeland (who also ran for Leader)
The Blackberry?
Canadians generally are an innovative group and many interesting opportunities have been created here. (What was the story on BlackBerry?).
Have the various innovations been supported and encouraged to grow/benefit Canada? Did the companies move to U.S. in order to benefit from their less regulated and more supportive stance? Hmmm…
I wonder about the retaliatory and angry response to the U.S. tariffs shift…tourism is one of the key financial outcomes right across Canada. The fuss is not at the citizen level and yet responses seem to target same. If tourism drops because Americans are nervous about visiting, then it is Canadians who will suffer. Your thoughts?
The best negotiations are not about retaliations, but about a seeking of ways to arrive at a productive middle place. Is that happening?
What Will Parliament Do?
At the moment, many things are being stated by Trudeau’s cabinet. That is the “past”. Parliament is not sitting. The new leader has not chosen his cabinet (which is the “present”). We should be hearing from them, and the prorogued parliament (done by Trudeau) needs to re-open. The opposition parties (3 of them) need to speak to these issues. An election should be called ASAP and the Canadian population’s voice will then be heard. (Ontario’s premier, Doug Ford, was wise to pull back his initial angry response earlier today and to call for a lowering of the temperature).
A real negotiation needs to take place at the federal level. Who’s in charge right now? Just my “thinking out loud” thoughts…welcome yours!
