Bank of Canadas big rate cut was a close call, minutes show – National [Video]

The Bank of Canada’s decision to cut rates by 50 basis points on Dec 11 was a close call, with some members of the governing council suggesting a smaller reduction, according to minutes released on Friday.

The central bank slashed its key policy rate to 3.25 per cent to help address slower growth. Governor Tiff Macklem indicated further cuts would be more gradual, a shift from previous messaging that continuous easing was needed to support growth.

The minutes said the discussions had focused on whether a 50 basis point or a 25 basis point cut was more appropriate.

“Each member of Governing Council acknowledged that the decision was a close call based on their own assessments of the data and the outlook for growth and inflation,” they said.

Those preferring a bold move were concerned about a weaker growth outlook and downside risks to the inflation forecast, even while acknowledging that not all the …