Bank of Canada cuts key interest rate again, more cuts 'reasonable' if inflation keeps easing

Bank of Canada governor Tiff Macklem takes part in a news conference in Ottawa on Wednesday after cutting the bank's key interest rate to 4.5 per cent. He said it would be reasonable to expect further rate cuts if inflation continues to ease. (Blair Gable/Reuters)

The Bank of Canada cut its key interest rate to 4.5 per cent on Wednesday, with governor Tiff Macklem saying during a news conference that it would be reasonable to expect further rate cuts if inflation continues to ease.

The cut was widely expected by economists after inflation eased in June. It marked the central bank's second consecutive cut after last month's meeting, when it cut rates for the first time since March 2020.

"If inflation continues to ease broadly in line with our forecast, it is reasonable to expect further cuts in our policy interest rate," Macklem told reporters.

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Benchetrit, J. (2024, July 24). Bank of Canada cuts key interest rate again, more cuts “reasonable” if inflation keeps easing | CBC News. CBCnews. https://www.cbc.ca/news/business/bank-of-canada-july-meeting-1.7273417