Bank of Canada Cuts, Softens Dovish Stance
As had been widely expected, the Bank of Canada delivered a third consecutive rate cut this morning, and language in the accompanying communications helped prepare the ground for further easing in the coming months – but officials stopped short of pulling the fire alarm, suggesting that cuts will proceed at a gradual pace. In the official statement setting out the decision, policymakers acknowledged a continued easing in price pressures, with the Bank’s preferred measures of core inflation slowing further, and shelter cost increases beginning to decelerate. Overall, “excess supply in the economy continues to put downward pressure on inflation, while...