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Bank of Canada reduces key interest rate

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.

Loads of money.