Today we’re joined by economist Don Drummond for a live reaction of the Bank of Canada’s recent policy announcement. Don breaks down the Bank of Canada’s surprising decision to cut interest rates by 50 basis points, and what this means for the Canadian economy, housing market, and consumers. The rate cut is largely aimed at stimulating housing demand and supply, although Don points out that this move is unlikely to significantly impact housing prices. Instead, it serves as a boost to housing availability, potentially easing some pressure on a market in dire need of dense and affordable housing options. Addressing the broader economic impacts on the Canadian dollar and productivity, Don highlights a notable productivity gap between Canada and the U.S., which is tied to a weaker Loonie. This 20% disparity is a key challenge, as a less competitive currency can strain Canadian productivity growth relative to the U.S.

Recorded on October 24th, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.