{"id":53892,"date":"2024-12-12T13:00:44","date_gmt":"2024-12-12T13:00:44","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/12\/12\/what-bank-of-canada-interest-rate-cut-means-for-the-canadian-dollar\/"},"modified":"2024-12-12T13:00:44","modified_gmt":"2024-12-12T13:00:44","slug":"what-bank-of-canada-interest-rate-cut-means-for-the-canadian-dollar","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/12\/12\/what-bank-of-canada-interest-rate-cut-means-for-the-canadian-dollar\/","title":{"rendered":"What Bank of Canada interest rate cut means for the Canadian dollar"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">News<\/li>\n<li class=\"breadcrumbs__item\">Economy<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">How the loonie reacted to another 50 basis point cut might surprise you<\/p>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Dec 12, 2024<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 2\u00a0hours ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">5 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"ac657540-48a9-4680-bd51-f1898887529c\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=webp&amp;sig=JHkKDcjdYZSZW9xdOvFh3A,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=webp&amp;sig=cKh3Aad-D_3Jj62GkIDqdw 2x\" type=\"image\/webp\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=jpg&amp;sig=vo76eaOLiMiWRvoxeUlTOg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=jpg&amp;sig=J1t0NFLTD8Qpfz2kmSWm8Q 2x\" type=\"image\/jpeg\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=webp&amp;sig=TiI21aBSmgd0sK5smPZvpA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=webp&amp;sig=V_EGlEX7OPqlFWWAYX3TKg 2x\" type=\"image\/webp\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=jpg&amp;sig=XOHwOA_JsK42XWSjKPOo1g,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=jpg&amp;sig=tD29Ar73K5kFdOfWMuUoUA 2x\" type=\"image\/jpeg\"><source media=\"(max-width: 767px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;type=webp&amp;sig=y8aE-CBwYOfiaYrmoMe7ag,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/canadian-dollar-gs1211.png?quality=90&amp;strip=all&amp;w=576&amp;h=432&amp;type=webp&amp;sig=9kXOpTWvHkFfyu3yDmPZFw 2x\" type=\"image\/webp\"><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">The Canadian dollar is down 6.5 per cent so far this year.<\/span> <span class=\"credit\">Photo by Norm Betts<\/span> \/<span class=\"distributor\">Bloomberg News<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2058984\" alt=\"\" height=\"320\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" width=\"760\"\/><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">You might have thought the Bank of Canada\u2018s latest interest rate cut \u2014 a second consecutive 50-basis-point whopper \u2014 would have sent the loonie plunging, but you were wrong if you did.<\/p>\n<p data-async=\"\">In the immediate aftermath of the widely expected cut, the Canadian dollar firmed up by about a half of a U.S. cent, on the reasoning that it looks like the Bank of Canada could take a slower approach to future rate cuts and might even make some previously unexpected pauses.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment4685419220799804571059234474557440\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<div class=\"article-block article-block-bg article-content__sign-in-group hidden\" data-aqa=\"identity-sign-in\" data-async=\"\" id=\"article-block\">\n<section 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class=\"intro-body__anonymous\">\n<p>REGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__registration_only hidden\">\n<p>THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account<\/li>\n<li>Share your thoughts and join the conversation in the comments<\/li>\n<li>Enjoy additional articles per month<\/li>\n<li>Get email updates from your favourite authors<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<div class=\"identity-screen m-x-0 p-x-0 col-xs-12 col-md-6 flex-justify-center flex-align-center\" aria-live=\"assertive\">\n<section class=\"sail\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-sailthru-personalization-engine=\"\" data-sailthru-personalization-engine-component=\"\"\/>\n<div class=\"m-x-0 p-x-0 col-xs-12 col-sm-6 col-md-12 flex-align-justify-center\" data-auth-component=\"\" id=\"auth-screen-form\">\n<div class=\"identity-screen-form--active w-full flex-align-justify-center\">\n<div class=\"identity-screen-form identity-screen__content w-full\">\n<h2 class=\"blocker-title\">Sign In or Create an Account<\/h2>\n<p><span class=\"identity-divider__line\"\/><span class=\"identity-divider__text\">or<\/span><span class=\"identity-divider__line\"\/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<footer class=\"identity-footer identity-screen__content m-x-0 p-x-0 col-sm-6 col-md-12\"\/><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cBad news is, to a significant degree, already priced into the exchange rate, and traders have been bracing for a widening in the gap between U.S. policy rates and their Canadian equivalents for months,\u201d Karl Schamotta, chief market strategist at Corpay Currency Research, said in a note following the Bank of Canada\u2019s decision to slice its borrowing rate to 3.25 per cent from 3.75 per cent.<\/p>\n<p data-async=\"\">Economist David Rosenberg also weighed in.<\/p>\n<p data-async=\"\">\u201cThe loonie seems to think the (Bank of Canada) may pause as it has rallied in the aftermath of the move,\u201d the founder of Rosenberg Research &amp; Associates Inc. said in a note on Wednesday.<\/p>\n<p data-async=\"\">Derek Holt, vice-president and head of capital markets economics at the Bank of Nova Scotia, said in a note, the Canadian dollar was \u201camong the strongest currencies on the day,\u201d based on the Bank of Canada telegraphing uncertainty around future rate cuts.<\/p>\n<p>The Canadian dollar has had a tough year versus its counterpart in the United States.<\/p>\n<p data-async=\"\">The loonie is down 6.5 per cent on the year, hovering just above 70 cents U.S., after starting the 2024 at nearly 75.5 cents U.S.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot20 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-headlinenews background--primary-light-gradient\" aria-labelledby=\"FinancialPostTopStories4823855769516608093354062656831488\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div 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If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_HeadlineNews\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment2645060045620918101827127563255808\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">A variety of factors have pushed it down, including the ongoing strength in the U.S. economy and, more recently, a threat by Donald Trump that he would impose a 25 per cent tariff on all goods entering the U.S. from Canada and Mexico on day one of his presidency.<\/p>\n<p>Diverging paths on interest rates haven\u2019t helped, either.<\/p>\n<p data-async=\"\">The Bank of Canada has cut rates five consecutive times this year for a total of 175 basis points, while the U.S. Federal Reserve has trimmed rates twice by a more modest 75 basis points. Markets predict there is an 85 per cent chance the Fed will cut rates again when it meets next Wednesday.<\/p>\n<p>A country\u2019s policy rate affects the value of its currency because higher interest rates attract investors looking for a better return, which increases demand for that country\u2019s currency and, therefore, its value.<\/p>\n<p data-async=\"\">The Bank of Canada on Wednesday indicated that future rate cuts are not guaranteed and upcoming decisions will be made on a case-by-case basis.<\/p>\n<p>Nevertheless, economists are forecasting rates in Canada to land in the range of two per cent to 2.5 per cent by the end of the first half of 2025.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment7485252017461743708680830710710272\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Markets are currently betting that the upper bound of the Fed target rate will fall to four per cent by mid-year from its current 4.75 per cent, meaning the interest rate differential between the loonie and the greenback won\u2019t be narrowing anytime soon.<\/p>\n<p>Traders may have priced in that divergence, but plenty of tripwires remain for the Canadian dollar in the longer term.<\/p>\n<p>\u201cThe loonie\u2019s risk profile remains highly asymmetric,\u201d Schamotta said, citing the dangers posed by the \u201celevated\u201d and growing debt among Canadian households and the potential for a trade war hanging over the economy.<\/p>\n<section aria-labelledby=\"moreTopicLabel3710980291548622251735236307058688\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" latest=\"\" bank=\"\" of=\"\" canada=\"\" rate=\"\" cut=\"\" boost=\"\" the=\"\" housing=\"\" market=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"The Bank of Canada's most recent interest rate cut is expected to stimulate the housing market.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/housing-market-gs1211.png?h=96&amp;strip=all&amp;quality=80&amp;sig=ODbZq5TncbBxIoyyAPhOXQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/housing-market-gs1211.png?h=96&amp;strip=all&amp;quality=5&amp;sig=D5zFx82fwJocFfVrCb41xQ\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/housing-market-gs1211.png?h=96&amp;strip=all&amp;quality=80&amp;sig=ODbZq5TncbBxIoyyAPhOXQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/housing-market-gs1211.png?h=192&amp;strip=all&amp;quality=80&amp;sig=bYmYx2IB1owf_sr0KAvGbQ 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/housing-market-gs1211.png?h=288&amp;strip=all&amp;quality=80&amp;sig=dGXvPodl8sgzpm-V5uHJZQ 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Will latest Bank of Canada rate cut boost the housing market?<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" expects=\"\" canadian=\"\" banks=\"\" to=\"\" come=\"\" under=\"\" increased=\"\" scrutiny=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Fitch Ratings expect banks to come under increased scrutiny from regulators in light of the historic sanctions against TD Bank.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/1212-biz-nk-td-banks.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=abEZz_U_-SlJWVpn0SUijQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/1212-biz-nk-td-banks.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=zkRMBaZwgNJo7y6WdohJGQ\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/1212-biz-nk-td-banks.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=abEZz_U_-SlJWVpn0SUijQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/1212-biz-nk-td-banks.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=j4N9lMHvVQuhaVexL-IxCg 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/1212-biz-nk-td-banks.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=jwuSEhllWIuU15MOT9UtYA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Fitch expects Canadian banks to come under increased scrutiny<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>An improvement in the Canadian economy and a deterioration south of the border could boost the loonie modestly, he said.<\/p>\n<p>\u201cAny upside will be limited, and downside exposures will remain significant,\u201d he said of the Canadian dollar\u2019s prospects.<\/p>\n<hr\/>\n<p data-async=\"\"><em><strong>\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em><\/p>\n<hr\/>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1758646\" alt=\"\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\"\/><\/strong><\/p>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=IoU8PJOTaOmWWQ4fYF6G0Q,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=AH8kfi7JP1dnb90fUey7FA 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=hVjzi2tXNBhE5IsTX-OBoQ,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=vosLtoql1FnB3yssZCXqYA 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=vK1AFrc0nQTDgVPyuNgFGA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=CWS7Y8ux5_i6GG_uhzuiVg 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=FXqd7v450de1v2dIGZ5RYg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=PEry17hkkVz9wgQ_GMI4XA 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=IcAtsLcy_TDhJkocBQO4IQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=0lCQ3oJ3YJaJUHauAmxiug 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Bank of Canada interest rate chart\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=288&amp;sig=6uuCBoncD0wI2uquQKvfwg\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=288&amp;sig=6uuCBoncD0wI2uquQKvfwg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=90&amp;strip=all&amp;w=576&amp;sig=jXRlLFdL7bJmiiOrQwk_SA 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Bank-of-Canada-interest-rate-cut-1.png?quality=5&amp;strip=all&amp;w=100&amp;sig=WqL6e9KLoOCONdlkHKFeFw\" height=\"812\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p data-async=\"\">The Bank of Canada cut its policy rate by 50 basis points to 3.25 per cent on Wednesday, a move widely expected by economists and markets.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_5\">\n<section aria-describedby=\"advertisment6259287919302200689051467933286400\" class=\"ad\">\n<p>Advertisement 5<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-5\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"5\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-5\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>The Dec. 11 decision marks the fifth consecutive cut by the central bank this year and the second half-point cut in a row to the overnight rate. The last times the bank made two consecutive half-point cuts were at outset of the pandemic in 2020 and during the 2008 financial crisis. The overnight rate now sits at the top of the central bank\u2019s neutral range. \u2014 Jordan Gowling, Financial Post<\/p>\n<p data-async=\"\">Read the full story here.<\/p>\n<hr\/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1758643\" alt=\"\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_breaking.png\" width=\"838\"\/><\/p>\n<ul>\n<li><strong>Today\u2019s data: <\/strong>Statistics Canada releases housing permits and manufacturing sales numbers for October.<strong><br \/><\/strong><\/li>\n<li><strong>Earnings: <\/strong>Transat AT Inc., Empire Co. Ltd., ADF Group Inc.<strong><br \/><\/strong><\/li>\n<\/ul>\n<hr\/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3080180\" alt=\"\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\"\/><\/p>\n<p><img decoding=\"async\" alt=\"\" class=\"noscript-image\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/12\/Screenshot-2024-12-12-065319.png\"\/><\/p>\n<hr\/>\n<figure class=\"embedded-image\"\/>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3080181\" alt=\"\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\"\/><\/strong><\/p>\n<hr\/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2059284\" alt=\"\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\"\/><\/p>\n<p data-async=\"\">There\u2019s an extraordinary divide between the generations, with many generation Zers and millennials saying that baby boomers especially are hanging on to their money too long and boomers saying that\u2019s their right. Read more here to find out why boomers might be right on this score.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_6\">\n<section aria-describedby=\"advertisment7285992056473950275796733681205248\" class=\"ad\">\n<p>Advertisement 6<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-6\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"6\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-6\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<hr\/>\n<h3>Hard Earned Truth<\/h3>\n<p data-async=\"\"><span data-olk-copy-source=\"MessageBody\">In an ongoing series about what the next generation needs to know to build wealth, we offer another hard earned truth: Good debt can boost investment wealth, but beware its bad twin.\u00a0<\/span><\/p>\n<hr\/>\n<h3>McLister on mortgages<\/h3>\n<p data-async=\"\">Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Read them here\u00a0<\/p>\n<hr\/>\n<h3>Financial Post on YouTube<\/h3>\n<p data-async=\"\">Visit Financial Post\u2019s YouTube channel for interviews with Canada\u2019s leading experts in economics, housing, the energy sector and more.<\/p>\n<hr\/>\n<p data-async=\"\"><em>Today\u2019s Posthaste was written by Gigi Suhanic, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.<\/em><\/p>\n<p data-async=\"\">Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0posthaste@postmedia.com.<\/p>\n<hr\/>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>What Bank of Canada interest rate cut means for the Canadian dollar<\/a><br \/>\n<br \/>2024-12-12 13:00:44<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links News Economy How the loonie reacted to another 50 basis point cut might surprise you Published Dec 12, 2024 \u00a0\u2022\u00a0 Last updated 2\u00a0hours ago \u00a0\u2022\u00a0 5 minute&#8230;<\/p>\n","protected":false},"author":2,"featured_media":53893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-53892","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/53892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=53892"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/53892\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/53893"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=53892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=53892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=53892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}