That’s based on the central bank’s summary of deliberations, which details discussions held by council members within the run-up to the March 6 rate of interest announcement.
What did the Bank of Canada Council agree on?
The summary said council members agreed the central bank could begin cutting rates of interest sometime this yr if the economy and inflation develop in step with the Bank of Canada’s forecasts.
And while members agreed on the conditions under which the Bank of Canada must begin cutting its key rate of interest – they need further and sustained easing of the set of indicators they call “underlying inflation” – they’d different views on it when these conditions can be met.
“There were differing views among Governing Council members as to when there would likely be sufficient evidence that these conditions would exist and how the risks to the outlook should be weighted,” the summary said.
The Bank of Canada decided earlier this month to maintain its rate of interest at 5%, brushing aside questions on the timing of rate cuts.
Governor Tiff Macklem said the central bank didn’t need to move too quickly only to should change course later.
Latest data shows Canada’s annual inflation rate was lower than expected for the second month in a row, reaching 2.8% in February.
When will the Bank of Canada cut its key rate of interest?
As inflation continues to ease and the economy slows, forecasters proceed to expect the Bank of Canada to start cutting its key rate of interest across the middle of the yr.
