1) Global Markets Show Decline
Global equity markets fell last week as investors awaited key earnings reports and central bank moves. The Canadian S&P/TSX Composite Index saw declines, particularly in Consumer Staples and Tech.
2) Bank of Canada Makes Major Rate Cut
In a significant move, the Bank of Canada cut its key interest rate by 50 bps to 3.75%. This is the fourth consecutive rate cut, aimed at supporting below-target inflation and the slowing economy. Lower rates may ease borrowing for households and businesses, creating a favorable environment for domestic demand.
3) U.S. Real Estate Market Struggles
High mortgage rates and prices are cooling the U.S. housing market, with home sales at their lowest level since 2010. Despite this, the U.S. Fed remains cautiously optimistic, keeping rates stable for now.
4) PBOC Supports China’s Economy
China’s central bank lowered its prime rates to boost domestic lending and support a struggling property market. Continued stimulus may help restore investor confidence and stimulate economic growth.
5) IMF Downgrades Global Growth Outlook
The IMF revised its 2025 global growth forecast slightly lower due to persistent risks like geopolitical tensions. Despite these concerns, the likelihood of a major recession remains low.
Stay informed with Safavi Financial for insights on how economic changes may affect your financial strategy.
