Loonie Tunes

Welcome to the January edition of the Wealth Awesome newsletter. Thank you to the 15,000+ 🇨🇦 subscribers who join us today!

Market Update

Summary

Loonie Tunes: BoC Marches to Its Own Beat as U.S. Holds the Line on Rates

As the U.S. economy continues its strong performance with expectations of sustained higher interest rates, other central banks, including the Bank of Canada (BoC), are adjusting their policies in response to local economic conditions.

Despite the U.S. Federal Reserve maintaining a higher terminal rate of 4.25% to 4.5%, the BoC is expected to reduce its rate to a more stimulative 2% to counteract a weakening Canadian dollar and soften the economic slowdown.