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Bank of Canada Cuts Interest Rates to 4.75%, Signals Confidence in Inflation Easing



The Bank of Canada has reduced its overnight rate target to 4.75%, with corresponding adjustments to the Bank Rate and deposit rate. Despite slower-than-expected GDP growth of 1.7% in Q1 2024 and moderating wage pressures, consumption and investment showed strength. Global economic performance was mixed, with stronger activity in the euro area and China but slower growth in the U.S. Inflation in Canada eased to 2.7% in April, with core inflation also slowing. The rate cut reflects confidence that inflation will continue toward the 2% target, though risks remain. The Bank remains vigilant on core inflation and economic balance.





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