(Bloomberg) — The Bank of Canada made its second straight outsize cut in interest rates and signalled policymakers are ready to slow down monetary easing.
Officials led by Governor Tiff Macklem lowered the benchmark overnight rate by 50 basis points to 3.25% on Wednesday, bringing borrowing costs to the top end of the range of their estimate for the neutral rate — a level that’s neither restrictive nor stimulative for the economy.
Yet they also suggested the jumbo cut — which was anticipated by markets and most economists — will likely be followed by a return to smaller cuts in 2025. Officials dropped language that had been in previous statements that said they expect to reduce borrowing costs further if their forecasts materialize.
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