Bank of Canada lowers key interest rate to 4.5%

Posted on July 29, 2024   |  

The Bank of Canada lowered its key interest rate for the second consecutive time to 4.5%, warning that achieving 2% inflation may be challenging.

The quarter-point rate cut was driven by reduced price pressures and a slowing economy.

The central bank aims to prevent the economy and inflation from weakening more than expected.

The Bank of Canada cautions that reaching the 2% inflation goal will not be straightforward.

Economic conditions and inflation forecasts influenced the central bank's decision.

Future rate cuts will depend on economic trends and progress toward the 2% inflation target.