As a researcher with a background in economics and finance, I’ve closely monitored the recent decision by the Bank of Canada to cut its benchmark interest rate by 25 basis points. This move was long-anticipated by economists and financial market experts due to growing concerns about slow economic growth and the need to keep inflation in check.
The Bank of Canada has initiated a significant monetary move, reducing its key lending rate by a quarter of a percentage point.
Looming Economic Crisis: Markets and Bitcoin Kicks
As an analyst, I’ve observed many economists and financial market experts predicting this move for some time now. They based their expectations on the fact that Canadian policymakers had expressed contentment with the recent trend of inflation in the region.
As an analyst, I’ve noticed identical apprehensions among stakeholders regarding our economy’s sluggish expansion. It wasn’t until this past Wednesday that the long-awaited reduction in the benchmark rate materialized. Now, with this cut, Canada’s interest rate stands at 4.75%.
Using a more conversational tone,
The Canadian Dollar (CAD) has been affected by the decision as lower interest rates reduce the appeal for foreign investors. On the other hand, Bitcoin (BTC) experienced a price rise due to the supportive environment created by lower interest rates, which typically benefits riskier assets. Currently, Bitcoin is priced at $71,461.26, marking a 2.01% growth in the past 24 hours.
Beyond Bank of Canada: Europe and U.S Next
Economists generally anticipate that the European Central Bank (ECB) will adopt a similar stance at its upcoming meeting. Consequently, it is widely believed that the ECB will be the second major central bank to take easing measures.
As an analyst, I’ve noticed a divide in opinions regarding the Federal Reserve’s monetary policy for this year. Some members within the Fed are expressing their doubts about implementing any rate cuts in 2021. In contrast, there is growing anticipation among traders that the Fed could make a move as soon as November. This shift in expectations stems from recent data pointing towards moderating inflation rates and a softening labor market in the United States.
Due to the latest move by the Bank of Canada (BoC), the gap between the BoC’s interest rates and those of the US Federal Reserve has grown wider. Currently, the Federal Reserve’s key interest rate ranges from 5.0% to 5.25%.
If the economic situations of certain countries worsen and monetary easing doesn’t bring about the anticipated results, Bitcoin could experience a surge in usage as investors seek refuge in it as an inflation hedge. According to crypto market analysts like PlanB, Bitcoin’s price might reach up to $100,000 by year-end based on earlier predictions.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- ANKR PREDICTION. ANKR cryptocurrency
- PUSH PREDICTION. PUSH cryptocurrency
- APEX PREDICTION. APEX cryptocurrency
2024-06-05 20:10