TORONTO and OTTAWA, Ontario, Dec. 04, 2024 (GLOBE NEWSWIRE) -- CPA Canada’s chief economist is calling for the Bank of Canada to deliver a substantial rate cut on Dec. 11 to support the economy amid looming tariff threats and rising unemployment.
“A 50-basis-point rate cut would lift the constraints on the economy and set us up for the economic challenges of the coming winter,” says David-Alexandre Brassard, CPA Canada’s chief economist.
“High interest rates have been a drag on spending. Despite strong population growth, the labour market has deteriorated, with unemployment climbing from five per cent to 6.5 per cent in just 18 months. After six consecutive quarters of declining GDP per capita, decisive action will be critical to spur growth.”
Ninety-four per cent of Canadians expect to be financially stressed this holiday season, according to a recent survey by CPA Canada and BDO Debt Solutions. And the rate cut is not expected to immediately reduce the cost of living, says Li Zhang, CPA Canada’s financial literacy leader.
“While the expected rate cut will ease debt repayment burdens—particularly for mortgage holders—it won’t reverse price hikes. As the holiday season approaches, Canadians should create budgets and stick to them, resisting the urge to overspend.”
CPA Canada is a trusted source for insight during these uncertain economic times.
Please contact media@cpacanada.ca to arrange an interview with our experts.
