– The Bank of Canada announced a second consecutive interest rate cut as concerns about high rates affecting the economy and inflation persist.
– The decision to lower the policy rate by a quarter of a percentage point was widely expected by economists.
– Governor Tiff Macklem emphasized the need for growth and highlighted the risks of keeping rates high for too long.
– The central bank’s focus on the state of the economy and potential further rate cuts indicated a shift in tone towards more cuts in the future.
– Several commercial banks, including BMO, expect two more interest rate cuts before the end of the year.
– The Bank of Canada’s next interest rate decision is scheduled for September 4, and the quarterly monetary policy report suggests inflation will return to the two per cent target next year.