The Bank of Canada announced the 6th consecutive drop to the interest rate, and the lowest interest rate since September 2022. Canada's new interest rate is now 3 percent after a decrease of 25 basis points. During a press release held this morning, Tiff Macklem, Governor of Bank of Canada, discussed the Monetary Policy Report but also fielded questions regarding the depreciation of the Canadian dollar. Currently the Canadian dollar is worth 69 cents to every U.S. dollar.
"We've seen the recent depreciation, we've seen in the Canadian dollar has been more driven in our view by trade uncertainty and particularly President Trump's threats to impose 25% tariffs on Canadian exports," Macklem said.
This depreciation will have impacts on foods being imported.
"The cost of things we import will be higher, and you will start to see that relatively quickly on things like fresh fruit and vegetables, which obviously its winter in Canada. We import a lot of those from the United States, that'll get passed through pretty quickly." Macklem continued.
Read more at 1069 The Hex