Bank of Canada governor said growth needs to pick up so inflation doesn’t fall too much.
The Bank of Canada has trimmed its key policy rate by 25 basis points for the second month in a row, bringing it down to 4.5 percent, and said more cuts were likely if inflation continued to cool in line with forecasts.
The Bank announced the rate cut on Wednesday.
The bank had previously kept the rate at a two-decade high of 5 percent for almost a year in a bid to combat high inflation by suppressing economic growth.
“We are increasingly confident that the ingredients to bring inflation back to target are in place,” Governor Tiff Macklem told reporters. The bank reiterated that inflation should return sustainably to its 2 percent target in the second half of 2025.
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