Global Markets: Second rate cut by BoC

Glacier Farm Media MarketsFarm – The following is a glance at the news moving markets in Canada and globally.

–  The Bank of Canada (BoC) cut its key interest rate by 25 basis points on Wednesday to 4.50 per cent. This is the BoC’s second consecutive rate cut. The central bank said Canadian economic growth was around 1.5 per cent so far in 2024, with 1.2 per cent growth expected for the year with it expected to expand to 2.1 per cent in 2025. The announcement also noted inflation was holding below three per cent with it set to drop to two per cent.

– Earth experienced its second-consecutive warmest day, the Copernicus Climate Change Service reported on Wednesday. The world’s daily average temperature reached 17.15 degrees Celsius on July 22, edging out the previous day’s record of 17.09 C. And that surpassed the record of 17.08 C set on July 6, 2023. The service pointed to above-normal temperatures over Antarctica as to why new highs were set.

– The Bank of Japan is expected to debate an interest rate increase when it meets July 30 to 31 for its policy meeting, Reuters reported on Wednesday. Most analysts polled by Reuters predicted Japan’s central bank to stand pat with the country’s inflation at 2.6 per cent.