# Canada becomes first G7 nation to cut interest rates

> The Bank of Canada cut its benchmark interest rate on June 5, becoming the first G7 central bank to ease policy after holding at 5% for nearly a year. Governor Macklem said future cuts would be gradual and data-dependent, and rates would settle above pre-pandemic levels. The bank also said it could not diverge too far from the Federal Reserve.

- Date: 2024-06-05 · published 2024-06-05T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/30024-canada-becomes-first-g7-nation-to-cut-interest-rates
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Lower Canadian rates tend to weaken the loonie, which can make Canadian exports cheaper and marginally support canola and barley trade flows. The effect on feed prices is indirect.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/bank-canada-cuts-rates-first-time-four-years-2024-06-05/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.