Financial News: Bank Of Canada Slashes Interest Rates By 50

Bank Of Canada Slashes Interest Rates By 50 Basis Points

10/23/2024 - 10:01:00 (RTTNews)

(RTTNews) - Following three straight quarter point interest rate cuts, the Bank of Canada on Wednesday announced its widely expected decision to slash rates by a half point.

The Bank of Canada said it decided to reduce its target for the overnight rate by 50 basis points to 3.75 percent, with the Bank Rate at 4 percent and the deposit rate at 3.75 percent.

The Canadian central bank's decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7 percent in June to 1.6 percent in September.

"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range," the bank said its statement.

The Bank of Canada also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook

"We will take decisions one meeting at a time," Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2 percent target.

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