Maybe… just maybe a cut won’t help
They need new leadership and an actual economy that’s not housing speculation pic.twitter.com/ey0DVlkFew
— Julia (@juliajeler) December 7, 2024
The Canadian unemployment rate is currently the highest it has been since 2016. The last time unemployment was this high, the Bank of Canada (BOC) policy rate was 0.5%. Today, it stands at 3.75%. This stark contrast highlights the severity of the current economic situation. The BOC will likely have to cut rates significantly, which would inevitably weaken the Canadian dollar, or Loonie. However, even drastic interest rate cuts might not create the over one million jobs needed for the influx of people who have immigrated to Canada in recent years. Furthermore, such cuts would not resolve issues of stagnant productivity, wages, or the ongoing housing affordability crisis.
Retail sales in Canada have also taken a hit, dropping 2.2% year-over-year, despite the population growing by 3.2% over the same period. This discrepancy suggests a deeper issue within the economy, as increased population typically drives higher retail sales. The sharp decline in retail activity points to underlying economic troubles that could signal more significant problems ahead.
Canada's Justin Trudeau has an approval rating of barely 25% and he's going to get destroyed in next year's election. So right now, his government just unilaterally banned hundreds of types of firearms, meaning their owners must immediately surrender them to the government. Then,…
— Charlie Kirk (@charliekirk11) December 7, 2024
Rates are dropping.
Jobs are vanishing.
Toronto’s housing market is cracking.
Tick Tock ⏰️ pic.twitter.com/Jh5WmEmRWx
— Shazi (@ShaziGoalie) December 8, 2024
https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
https://www.forbes.com/advisor/ca/mortgages/bank-of-canada-key-interest-rate-announcement/
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