Bank of Canada cuts key interest rate by 25 basis points. The decision by the Bank of Canada to cut its key interest rate marks a significant shift after two years of grappling with inflationary pressures. This quarter-point cut, the first in over four years, reflects growing confidence that inflation gradually aligns with the bank’s two percent target.
Governor Tiff Macklem’s remarks suggest a cautious optimism, hinting at the possibility of further rate reductions should inflation continue to decrease. With predictions from T-D foreseeing a potential decrease to 4.25 percent by year-end, it appears that the bank is poised to take proactive measures to support economic stability amidst evolving inflationary dynamics.
