Bank of Canada cuts policy rates by 25 basis points

The Bank of Canada decided on Wednesday to cut policy rates by a quarter percentage point for a third consecutive meeting. It reiterated that it is “reasonable” to expect more easing to come if inflation keeps decelerating.

The central obank reduced its target for the overnight rate to 4¼ per cent, with the Bank Rate at 4½ per cent and the deposit rate at 4¼ per cent. The Bank said it is continuing its policy of balance sheet normalisation.

Policymakers led by Governor Tiff Macklem lowered the policy interest rates to 4.25 per cent.

“We will continue to assess the opposing forces on inflation, and take our monetary policy decisions one at a time,” Macklem said in his opening statement.

“We want to see economic growth pick up to absorb the slack in the economy,” Macklem stated, adding that the overall weakness continues to “pull inflation down.”

Attribution: Bank of Canada & Monetary Policy Decision Press Conference