(Finance) – The Bank of Canada ha reduced its key rate by 50 basis points to 3.25%meeting analysts’ expectations and cutting the cost of money for the fifth consecutive meeting
The central bank highlights the possibility that the new US administration will impose new tariffs on exports Canadians in the United States, increasing uncertainty and clouding the economic outlook.
THE’CPI inflation was around 2% since the summer and is expected to approach the 2% target on average over the next two years. Since October, upward pressure on inflation from housing and downward pressure from asset prices have both moderated as expected.
“With inflation around 2%, aoversupplied economy And recent indicators point towards weaker growth than expectedthe Governing Council has decided to reduce the reference rate by another 50 basis points to support growth and keep inflation close to the middle of the target range of 1-3%”, reads the statement released at the end of the meeting .
“The Governing Council has substantially reduced the reference rate since June – he underlined – In the future, we will evaluate the need for further reductions of the reference rate one decision at a time. Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.”
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