Bank of Canada cuts rates again

(Sharecast News) - The Bank of Canada on Wednesday cut its key policy rate for the second month in a row, as expected, and said it would trim again if inflation continued to fall.

The key policy rate was cut by 25 basis points to 4.5%.

"We are increasingly confident that the ingredients to bring inflation back to target are in place," said BoC Governor Tiff Macklem, He reiterated that inflation should return to its 2% target in the second half of 2025.

However, the bank cut its 2024 growth forecast to a 1.2% from the 1.5% it forecast in April as households put aside more cash to pay debts and cut back on discretionary items.

Reporting by Frank Prenesti for Sharecast.com