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Bank of Canada Cuts Key Interest Rate to 2.25%, Signals Potential Pause in Easing Cycle
Bank of Canada Cuts Key Interest Rate to 2.25%, Signals Potential Pause in Easing Cycle
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BTCCSquare news:
The Bank of Canada delivered its second consecutive quarter-point rate cut, lowering the benchmark to 2.25% - the lowest level since July 2022. Governor Tiff Macklem framed the MOVE as a response to economic headwinds from U.S. trade tensions while maintaining inflation targeting discipline.
Policy makers revised GDP growth downward to 1.2% for 2025, citing tariff impacts and cooling demand. The central bank's statement emphasized monitoring inflation expectations, with consumer prices projected to average 2.1% through 2026. 'The policy rate is appropriately calibrated for current conditions,' Macklem noted, suggesting a potential pause absent material data changes.
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