Bank of Canada Reduces Interest Rates Again To 4.5 Percent, Hints at More Cuts
“We are increasingly confident that the ingredients to bring inflation back to target are in place,” Macklem said in his opening remarks.
In a significant move, the Bank of Canada has lowered its policy interest rate for the second time in a row, suggesting that more cuts could be on the way if inflation continues to decline. This latest adjustment, a reduction of 25 basis points, brings the overnight rate to 4.5 percent, levels not seen since June 2023. Last month’s cut from 5 percent to 4.75 percent marked the first reduction in over four years.
Bank of Canada Governor Tiff Macklem explained that the decision was driven by economic data indicating a slowdown in the labour market, an excess supply in the economy, and a continued drop in inflation.
“We are increasingly confident that the ingredients to bring inflation back to target are in place,” Macklem said in his opening remarks.
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