Bank of Canada Cuts Rate to 4.25%, Easing Inflation Worries

  • The Bank of Canada reduced its key policy rate to 4.25% for the third time due to easing inflationary pressures.

  • Canada’s inflation rate dropped to a 40-month low of 2.5% in July but remains above the BoC’s 2% target.

  • U.S. job vacancies in July fell to 7.673 million, marking the lowest level since early 2021 and missing market forecasts.

Read also: Canadians Show Reluctance to Embrace CBDC at Scale: Bank of Canada

The Bank of Canada (BoC) lowered its key policy rate by 25 basis points to 4.25% on Wednesday, its third consecutive rate cut, reported by Wu Blockchain. This move was prompted by easing inflationary pressures, with Canada’s inflation rate falling to a 40-month low of 2.5% in July.

The Bank of Canada cut its key policy rate by 25bps to 4.25% as expected on Wednesday, its third consecutive rate cut, citing continued easing of broad-based inflationary pressures. Canada's headline inflation rate fell to a 40-month low of 2.5% in July, still above its 2%…

— Wu Blockchain (@WuBlockchain) September 4, 2024

While this decline is positive, inflation remains above the central bank’s 2% target, and the BoC forecasts an annualized rate of 2.8% for…

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