The world's leading central bank says it's ready to usher in the mythical creature known as "lower Fed Funds rates" to combat mounting unemployment.

And when it finally pulls the plug on its 5.375% policy rate in four weeks, the falling global rate tide could lower all boats—including Canada's.

That, not surprisingly, has implications for mortgage term selection, as laid out in this week's MLN Minute.

StatsCan pulled another CPI rabbit out of its hat on Tuesday. For the first time since February 2021, inflation dipped below its 10-year average.

July headline CPI simmered down to a lukewarm 2.5% y/y pace, practically rolling out the red carpet for a 1/4-point Bank of Canada rate cut two weeks from now.
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The BoC's favourite average core measure dropped to 2.55%, a touch better than expected. That means the Bank's crystal ball gazing was on point with its 2.5% Q3 average core estimate.

In other words, disinflation’s hitting its targets like a pro golfer on the back nine.