Bank of Canada Rate Cut
June 5, 2024
The Bank of Canada’s policy interest rate of 5.0% since July 2023 has been cut to 4.75% in a move to lessen the degree of policy restraint. However, balance sheet normalization is to continue, and the released statement notably does not commit to any particular timetable of ensuing changes.
Recent data has increased our confidence that inflation will continue to move towards the 2% target. Nonetheless, risks to the inflation outlook remain. Governing Council is closely watching the evolution of core inflation and remains particularly focused on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behavior.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Canada
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