Bank of Canada Cuts Rate to 4.75%, Signals More Cuts

The Bank of Canada cut interest rates to 4.75% for the first time since March 2022. This marks a shift from the previous peak rate of 5%. The central bank cited easing inflation and signaled potential future cuts. Governor Tiff Macklem emphasized cautious rate reductions to avoid jeopardizing progress against inflation. Core inflation and CPI components suggest price increases are no longer broad-based, supporting the decision for a rate cut.