Market odds for a cut from the Bank of Canada reached 82 per cent on Monday REUTERS/Blair Gable · REUTERS / Reuters
The Bank of Canada (BoC) reduced its benchmark interest rate for a second consecutive meeting on Wednesday but also signalled its rate-cutting cycle may be over, calling the current level “about right” to keep inflation in check and help the economy adjust to a slower growth path.
The quarter-point cut brought the policy rate down to 2.25 per cent, its lowest since mid-2022. Analysts view the BoC’s tone as an effort to balance support for a weak economy with its desire to avoid reigniting price pressures.
“If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to two per cent while helping the economy through this…
