Bank of Canada Cuts Interest Rate by 25 Basis Points to 4.5% for Second Time

Jul 24, 2024, 01:48 PM

The Bank of Canada has cut its key interest rate by 25 basis points to 4.5%, marking the second consecutive rate cut. This decision comes amid signs of a weakening economy, including slowing inflation, a loosening job market, and tepid economic growth. The central bank's move is expected to further cement expectations for future rate cuts by the Federal Reserve. Bank of Canada Governor Tiff Macklem indicated that downside economic risks are taking on increased weight in policy deliberations, and further rate cuts may be likely if inflation continues to drop. This is the second time the rate has been cut following a reduction in June, and it matches the forecast.