Welcome back to The Breakdown with me, NLW.

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What's going on, guys? It is Thursday, June 6th, and today we are going macro with some Bank of Canada rate cuts.

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All right, friends, well, as I said, today we are going over to the macro side of things, where the Bank of Canada has broken the seal, becoming the first G7 central bank to cut rates.

Rates were reduced by 25 basis points to 4.75% at Wednesday's meeting, with officials

citing significant progress on inflation.

BOC Governor Tiff Macklam said, with further and more sustained evidence underlying inflation

is easing, monetary policy no longer needs to be as restrictive. He guided further cuts to come

as well, stating, if inflation continues to ease and our confidence that inflation is headed

sustainably to the 2%

target continues to increase, it is reasonable to expect further cuts to our policy interest rate,

but we are taking our interest rate decisions one meeting at a time.

Consensus among economists is that the BOC will continue to cut at each of the four remaining

meetings for this year, bringing rates to 3.75%.

Stephen Brown, an economist at Capital Economics, said,

If we're right that growth will remain below potential and core inflation will fall,

then there will be little justification to maintain a restrictive policy stance.

So this is the narrative being put forward by central bank officials,

that Canada is headed for a soft landing,

...