The Bank of Canada has cut its key policy rate by 25 basis points to 4.25 percent for the third consecutive time, citing easing inflation and weak growth as key factors.
Governor Tiff Macklem stated that while inflation is nearing target levels, there are rising risks that the economy may weaken further, possibly necessitating larger rate cuts.
Despite a second-quarter growth rate of 2.1 percent, expectations are tempered due to recent flattening trends and a rising unemployment rate amid a struggling economy.
The BoC's future decisions may lead to a significant cut of 50 basis points in October or December if the economic conditions do not improve as projected.
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