Will the Bank of Canada Cut Rates in December?

The transcript discusses the economic context leading up to a December meeting, focusing on the central bank's interest rate decisions amid a weak Canadian economy and the impact of the US election. It covers the potential for interest rate cuts, the influence of bond yields on borrowing costs, and the central bank's available tools. The discussion also touches on trade, economic growth, and the service sector's role in the economy.

What was one of the reasons the Canadian central bank decided to hold interest rates steady?

• A strong Canadian economy

• The impact of fiscal stimulus

• Uncertainty around housing and the US election

• High inflation rates

How do rising bond yields affect the cost of borrowing?

• They decrease the cost of borrowing

• They increase the cost of borrowing

• They have no effect on borrowing costs

• They stabilize borrowing costs

What is one potential action the central bank could take without cutting interest rates?

• Reduce government spending

• Raise taxes

• Implement quantitative easing

• Increase interest rates

What is a significant factor in the growth of the Canadian economy according to the central bank's focus?

• Agricultural sector

• Manufacturing sector

• Services sector

• Mining sector

What is the potential impact of trade protectionism on the Canadian economy?

• It will only affect the US economy

• It could hinder economic growth

• It might have no effect

• It could boost the economy