Canada Global(Web News) The Bank of Canada cut its interest rate by 25 basis points overnight, a rate not seen since the start of the pandemic. After the announcement, the policy rate has come down to 4.75 percent, down from 5 percent since July last year.
The bank began raising its key interest rate in March 2022 after higher-than-expected inflation data from the pandemic and disruptions to global supply chains.
The central bank is now seeing strong evidence that core inflation is returning to sustainable levels. The Canadian central bank will be the first among its peers at the Bank of England, the European Central Bank and the United States Federal Reserve to cut rates.
“We’ve come a long way in the fight against inflation,” Bank of Canada Governor Tiff McCallum said in Ottawa. We are confident that inflation will continue to reach the 2 percent target that has risen in recent months.
Inflation rate was 2.7% in April which is less than 2.9% in March this year. The economy grew by 1.7 percent in the first quarter of 2024
