The Bank of Canada is set to announce its interest rate decision today, with analysts predicting another quarter-point rate cut.
With inflation slowing down, the central bank has previously reduced its policy rate at the last two meetings.
Currently, the key interest rate is at 4.5 percent, and Governor Tiff Macklem has indicated that the bank will continue to lower interest rates as long as inflation remains on a downward trend.
The impact of high interest rates has helped ease price pressures this year, bringing Canada’s inflation rate down to 2.5 percent in July.
Recent Statistics Canada data showed that the Canadian economy grew at a 2.1 percent annualized rate in the second quarter, surpassing expectations from both economists and the central bank.
Despite this growth, real gross domestic product per capita has continued to shrink for the fifth consecutive quarter, leading many experts to believe that a rate cut is still likely.
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