During a recent meeting, the Bank of Canada's governing council exhibited differing opinions on the timing for potential interest rate cuts, despite ultimately deciding to maintain the current rate at five percent. According to the released summary, while some council members advocated for a cautious approach due to sustained economic strength and persistent inflationary risks, others noted the recent slowdown in inflation and expressed concerns about the adverse impacts of prolonged high interest rates. The council concurred that any future reductions would be implemented gradually, reflecting the ongoing uncertainties and the deliberate approach to achieving the inflation target. Governor Tiff Macklem acknowledged that rate cuts as soon as June are being considered, buoyed by the noticeable deceleration in inflation to within the target range of one to three percent.
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