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BOC Reduces Rates By 25 BPS, Expects Future Cuts To Be Measured

BOC
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  • The BoC cut interest-rates for the first time in 4 years by 25 basis points to 4.75% as Governing Council agreed that monetary policy no longer needs to be "as restrictive."
  • The Bank says that they have increased confidence that inflation is moving back to the 2% target. 
  • "If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2% target continues to increase, it is reasonable to expect further cuts to our policy interest rate."
  • The Bank also noted "if we lower our policy interest rate too quickly, we could jeopardize the progress we’ve made. Further progress in bringing down inflation is likely to be uneven and risks remain."
  • When pointing to which indicators show a sustained decrease in inflation, the Bank included the proportion of CPI components increasing faster than 3%, which is now close to its historical average. 
  • The BoC says inflation in most advanced economies is easing, but that progress is uneven. 
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  • The BoC cut interest-rates for the first time in 4 years by 25 basis points to 4.75% as Governing Council agreed that monetary policy no longer needs to be "as restrictive."
  • The Bank says that they have increased confidence that inflation is moving back to the 2% target. 
  • "If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2% target continues to increase, it is reasonable to expect further cuts to our policy interest rate."
  • The Bank also noted "if we lower our policy interest rate too quickly, we could jeopardize the progress we’ve made. Further progress in bringing down inflation is likely to be uneven and risks remain."
  • When pointing to which indicators show a sustained decrease in inflation, the Bank included the proportion of CPI components increasing faster than 3%, which is now close to its historical average. 
  • The BoC says inflation in most advanced economies is easing, but that progress is uneven.