Bank of Canada cuts rates to 4.75%, signals more to come
https://www.theedgesingapore.com/news/global-economy/bank-canada-cuts-rates-475-signals-more-come
The Bank of Canada cut interest rates by a quarter of a percentage point, making it the first Group of Seven central bank to kick off an easing cycle.
Policymakers led by Governor Tiff Macklem lowered the benchmark overnight rate to 4.75% on Wednesday, as widely expected by markets and economists in a Bloomberg survey. Officials say they’re more confident that inflation is headed to the 2% target, and said it’s “reasonable to expect further cuts,” if progress continues.
“With further and more sustained evidence underlying inflation is easing, monetary policy no longer needs to be as restrictive,” Macklem said in prepared remarks.
Bonds rallied after the cut, and yields on the government of Canada 2-year note fell 5.9 basis points as of 10.10am Ottawa time. The loonie depreciated to C$1.3729 ($1.37) per US dollar.
