Bank of Canada cuts key interest rate again, signals more cuts ahead

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Bank of Canada cuts key interest rate again, signals more cuts ahead
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The Bank of Canada delivered its third consecutive interest rate cut Wednesday, bringing its key lending rate to 4.25 per cent.

Nojoud Al Mallees, The Canadian Press

In his written remarks, governor Tiff Macklem said the central bank’s decision reflected two considerations.“Second, as inflation gets closer to target, we want to see economic growth pick up to absorb the slack in the economy so inflation returns sustainably to the two per cent target.” “It’s said that victory goes to the bold, but the Bank of Canada went with the more cautious approach of yet another quarter point rate cut, leaving rates still well above where they will have to head to get the economy really moving again now that inflation is less of a threat,” wrote CIBC chief economist Avery Shenfeld.

Macklem reiterated that if inflation continues to ease as expected, it is “reasonable” to expect more rate cuts.

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Read more »

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Read more »

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