Bank of Canada Holds Rates, Telegraphs Readiness to Cut
After a series of rate cuts, the Bank of Canada decided to leave interest rates unchanged for a third consecutive time this morning, but signalled a willingness to cut rates again if inflation stabilises and the economy continues its underperformance. As was widely expected, the overnight rate was left at 2.75 percent after seven consecutive cuts were delivered between June 2024 and March of this year, bringing the benchmark down from its peak at 5 percent. In the official statement setting out the decision, policymakers noted that the Trump administration’s policy changes are “disrupting trade,” but the “economy is showing...