Chrystia Freeland Says Bank of Canada’s Monetary Policy Still ‘Contractionary’

Canadian Finance Minister Chrystia Freeland recently discussed the country’s economic situation at a policy conference in Montreal. She noted that despite three consecutive interest rate cuts by the Bank of Canada, borrowing costs remain “contractionary” and are impacting economic activity.

The Bank of Canada has reduced interest rates to 4.25% and may continue cutting if inflation keeps decreasing. Some economists predict rates could fall below 3% by mid-2025, coinciding with the next federal election deadline.

Freeland expressed cautious optimism about achieving a ‘soft landing’ for the economy, avoiding recession while managing inflation. She hopes this will improve public perception of the Liberal government’s economic policies. Currently, the Liberals trail the Conservatives in polls, with cost-of-living issues being a major concern for voters.

Canada’s recent economic stability has been partly attributed to population growth. However, this growth has led to increased pressure on housing, health, and social services. Officials are now considering measures to address these challenges.

Freeland acknowledged the importance of welcoming newcomers to Canada but emphasized the need for adequate infrastructure and capacity to support population growth. She stressed that increasing housing supply is a top priority, outlining plans to construct approximately four million homes by 2031.

Bank of Canada Governor Tiff Macklem is scheduled to speak soon in Toronto, potentially offering more insights into monetary policy.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Freeland Eyes Liberal Leadership As Party Sets March 9 Vote

Former Finance Minister Chrystia Freeland has begun consulting with colleagues about leading Canada’s Liberal Party,...

Friday, January 10, 2025, 07:49:27 AM

Freeland Says Canada And Allies To Challenge China And Indonesia’s Nickel Hegemony

Deputy Prime Minister Chrystia Freeland has revealed that Canada and its allies are considering taking...

Wednesday, April 24, 2024, 12:17:00 PM

Opposition Mounts as Freeland Moves Forward with Capital Gains Tax Changes

Finance Minister Chrystia Freeland on Monday introduced a motion in the House of Commons to...

Tuesday, June 11, 2024, 12:40:00 PM

Freeland Backtracks, Puts $3-Billion More Into Trans Mountain Pipeline

Finance Minister Chrystia Freeland announced a public financing freeze on the Trans Mountain pipeline more...

Thursday, June 1, 2023, 11:51:00 AM

Dominic LeBlanc Takes Over Finance Ministry Amid Trudeau’s Growing Crisis

Prime Minister Justin Trudeau is facing a deepening political crisis after Deputy Prime Minister Chrystia...

Tuesday, December 17, 2024, 09:55:23 AM