The Bank of Canada announced today a reduction in its key interest rate to 4.5%. Governor Tiff Macklem indicated during a news conference that further cuts may be considered if inflation continues to decline.
Concerns arose in May when inflation climbed to 2.9%, leading to doubts about potential rate cuts in July. However, June’s inflation report showed a decrease to 2.7%, indicating a stabilization in price pressures.
Analysts are now speculating that the Bank of Canada could pursue additional rate cuts based on these recent developments.
