Powell: If economy does as expected with think carefully cutting rates to begin this year – ForexLive + MORE Mar 7th

Powell: If economy does as expected with think carefully cutting rates to begin this year  ForexLiveAt the open: North American stock markets start higher ahead of Powell’s testimony  The Globe and MailWatch Fed Chair Powell testify live before Senate Banking Committee  CNBCWatch Fed Chair Powell’s House Testimony Here  The Wall Street JournalStock Market Today: Dow Jones Rises Ahead Of Powell Testimony As Nvidia Rallies, Tesla Slides  Investor’s Business Daily

In its March 6 announcement, the Bank of Canada (BoC) held its trend-setting overnight lending rate at 5% for the fifth consecutive time—and depending on whether you’re a borrower or investor, you’re heaving either a sigh of relief or impatience. Here’s what it means for Canadians.

As a result of the latest rate hold, the prime rate in Canada will remain at 7.2%. This might not seem like big news, but this is what lenders, from the Big Five Banks to other financial institutions, use to underpin their variable borrowing product pricing.

That the BoC would stick to the status quo was widely expected by market analysts and economists. A lower-than-expected January 2024 inflation reading of 2.9% took further pressure off the central bank, allowing it to continue its wait-and-see approach on rates. And, while the year-end gross domestic product (GDP) report came in hot, with a 1% uptick in the fourth quarter of 2023, overall lacklustre economic performance has made a firm case for ending the rate hike cycle…