Bank of Canada Rate Cut: A Turning Point for Inflation Control

The Bank of Canada has made a significant move by cutting its key interest rate to 3.75%, signaling a successful fight against inflation. This episode explores the implications of this decision for borrowers and its potential ripple effects on economic policies in Mexico and the G7. We analyze how this rate cut could influence financial markets, investment, and consumption in Mexico, alongside possible strategies for the Bank of Mexico in response to these changes.

Sources:
https://www.eleconomista.com.mx/economia/banco-canada-recorta-tasas-lucha-inflacion-funciono-20241023-731324.html
https://www.eleconomista.com.mx/economia/utilizar-politica-fiscal-ayudaria-china-crecer-20241023-731323.html

Outline:
(00:00:00) Introduction
(00:00:42) Bank of Canada cuts rates; "The fight against inflation worked"
(00:02:57) Using fiscal policy would help China grow