Is the Bank of Canada Poised for Another Rate Cut?

Canada’s inflation rate is on the decline, hitting 2.5% in July, according to Statistics Canada.

This drop will most likely set the stage for the Bank of Canada to lower interest rates by 0.25% when they make their next announcement on September 4th.

Claire Fan, an economist at the Royal Bank of Canada, thinks this news is a win for the Bank of Canada. “Readings were unequivocally weak — with slowing evident among all core CPI measures,” she says. In simpler terms, inflation is slowing down across the board, which might let the central bank shift its focus to the current economic slowdown.

With inflation easing, there’s a good chance the Bank of Canada could cut rates to help boost the economy. We’ll have to wait and see what happens on September 4th, but for now, this latest inflation dip might mean some changes are coming our way. Stay tuned!