The Bank of Canada lowers its key interest rates by 0.25 percentage points.
The central bank increased interest rates multiple times due to high inflation, reaching levels not seen in 22 years. They hadn't changed the rate in almost a year. In April, inflation finally went down to 2.7% annually, its lowest point in three years.
While the interest rate decrease wouldn't greatly impact Canadian borrowing costs, it could potentially revive the economy. In the first quarter, economic growth was only 1.7%, lower than predicted. Nevertheless, the central bank was cautious, stating that "inflation outlook is still uncertain" and that they'd "keep a close eye on future developments." The next monetary policy decision is slated for July 24.
