(Ottawa) The Bank of Canada expects to begin cutting interest rates “sometime this year,” but its board members are divided on exactly when that cut could happen. initiate.
This is what we can learn on Wednesday in the summary of the deliberations of the central bank’s board of directors which led to the decision on the key rate made on March 6, namely to maintain it at 5.0%.
The summary said board members agreed that rate cuts could begin this year if the economy and inflation move in line with Bank of Canada projections.
However, while members agreed on the conditions that will need to be met to begin lowering the policy rate, they were divided on the question of when there will be enough evidence that those conditions will be met.
The inflation rate was lower than expected for a second consecutive month in Canada, reaching 2.8% in February.
As inflation continues to ease and the economy slows, forecasters still expect the Bank of Canada to begin lowering its key rate around mid-year.