The Bank of Canada has announced a new slate of rate cuts.
The nation’s central bank reduced its target for the overnight rate by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%. With this announcement, the Bank of Canada noted the reduced rates were appropriate in view of the nation’s “weaker economy and less upside risk to inflation.”
“Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity,” said the central bank in a statement. “Governing Council is proceeding carefully, with particular attention to the risks and uncertainties. Governing Council will be assessing how exports evolve in the face of US tariffs and changing trade relationships; how much this spills over into business investment, employment, and household spending; how the cost effects of trade disruptions and reconfigured supply chains are passed on to consumer prices; and how inflation expectations evolve. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled.”
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