Bank of Canada‘s oversized cut, Ottawa’s reduced immigration targets and tipping’s effects: Business and investing stories for Oct. 27

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Bank of Canada‘s oversized cut, Ottawa’s reduced immigration targets and tipping’s effects: Business and investing stories for Oct. 27Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers hold a press conference at the Bank of Canada in Ottawa on Oct. 23.Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.

on Wednesday and said its fight with inflation is almost over. This is the fourth consecutive cut since June and follows three quarter-point moves, Mark Rendell reports. Governor Tiff Macklem said the central bank expects to continue lowering interest rates, but the pace of cuts will depend on incoming economic data. Financial markets expect the policy rate to fall to around 2.5 per cent by the end of next year.

It seems that Canadian stocks are a bargain in comparison to U.S. stocks, according to any number of valuation metrics. The cyclically adjusted price-to-earnings ratio, which takes a longer view of stock performance over the economic cycle, shows that U.S. equities have rarely been as pricey as they are today. For example, the elevated CAPE ratio of 36.6 suggests there’s limited upside for U.S. shares in the coming years.

 

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Five things to watch for in the Canadian business world this weekThis week will see several key events in Canada's business landscape, including the PRI In Person annual conference in Toronto, economic data releases from Statistics Canada, a vote on a new contract by Air Canada pilots, Aritzia's second-quarter earnings report, and the Bank of Canada's business outlook survey.
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