The Bank of Canada cut its interest rate by 50-basis points to 3.25 percent on Wednesday but signaled a slower pace of rate cuts going forward.
Economists had largely expected another big cut after a quarterly GDP report that showed growth came in below the central bank's forecast and a jobs report that showed a rise in the unemployment rate.
The decision marked the fifth consecutive cut since June. In October, the central bank cut rates by half a point for the first time since the pandemic.
Governor Tiff McClam said in his prepared statement that the central bank has opted for two big rate cuts in a row because inflation and economic growth no longer need to be restrained.
With inflation returning to the two percent target, the central bank is now focused on keeping it there.
However, with interest rates now down substantially, McClem indicated that the central bank would adopt a more gradual approach to monetary policy.
McCallum and Senior Deputy Governor Carolyn Rogers are expected to speak and take questions from the media at 10:30 a.m. ET. The conference will be streamed live on this page.
Bank of Canada Governor Tiff McCallum and Senior Deputy Governor Carolyn Rogers make a statement and answer questions about the central bank's interest rate announcement.
More to come.
Source link
