(Sep 04, 2024, CBC News)

Bank of Canada cuts key interest rate to 4.25%, citing cooling inflation

This is central bank's 3rd consecutive rate cut

In its third consecutive cut since June, the Bank of Canada lowered its key interest rate to 4.25 per cent on Wednesday, citing the continued easing of inflation. While the move was widely anticipated by economists, the gradual pace of cuts has sparked some questions about when a more dramatic move might be made.

"If we need to take a bigger step, we're prepared to take a bigger step," Bank of Canada governor Tiff Macklem said during a news conference Wednesday. "At this point, 25 basis points looked appropriate."

The decision Wednesday followed a pattern established earlier this summer when rates were cut to 4.75 per cent in June and 4.5 per cent in July.

https://www.cbc.ca/news/business/bank-interest-rate-1.7312774