The Bank of Canada cut its benchmark interest rate for a third straight time on Wednesday, as widely expected, as broad-based inflationary pressures continue to ease.
Economists across the board had expected the central bank to cut rates by 25 basis points, taking the benchmark rate to 4.25%. More cuts are expected this year.
The central bank noted that inflation slowed to 2.5 per cent in July, with the bank’s preferred core inflation measure also declining.
It noted that preliminary data suggest that economic activity was weak in June and July, and that employment growth has stalled in recent months.
“If inflation continues to slow broadly in line with our July outlook, it is reasonable to expect further cuts to our policy rate,” Governor Tiff Macklem said in a statement.
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