Bank of Canada Cuts, Signals More Easing Ahead
The Bank of Canada delivered a second consecutive rate cut this morning, and language in the accompanying communications suggested that further easing could come in the months ahead, triggering a mild sell-off in the loonie. In the official statement setting out the decision, policymakers noted that progress in reducing inflation has continued, with the Bank’s preferred measures of core inflation holding below 3 percent for several months and diffusion measures nearing historical norms. Shelter price growth remains elevated, and services costs continue to rise in the areas most affected by rising wages. Overall, the Bank expects core inflation to slow...