The Bank of Canada cut its benchmark interest rate for the third consecutive time on Wednesday, as was widely expected, as broad inflationary pressures continue to ease.
Economists across the board had predicted that the central bank would cut interest rates by 25 basis points, bringing its policy rate to 4.25 per cent. More cuts are expected to come this year.
The central bank noted that inflation slowed to 2.5 pre cent in July, with the Bank’s preferred measures of core inflation also moving lower. It also flagged that preliminary data suggests economic activity was soft through June and July, and that employment growth has stalled in recent months.
Economists are predicting the Bank of Canada will continue cutting its interest rate for the remainder of the year and into 2025, with the rate falling between 2.25 and 3.25 per cent by the end of next year.
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