BoC says it’s reasonable to expect more rate cuts [Video]

OTTAWA –

Given the continued progress the Bank of Canada has made in bringing inflation back down to the 2 per cent target, it is reasonable to expect more rate cuts, Governor Tiff Macklem said on Tuesday.

Macklem was making his first remarks since data showed the consumer price index in August fell to 2 per cent, the lowest rate since February 2021. The bank aims to keep inflation around the mid-point of a 1 per cent to 3 per cent target range.

The comments represent a change in tone from Macklem, who had previously said more rate cuts were likely if the bank continued to make progress in the fight against inflation.

On Tuesday, Macklem made clear that the bank had already achieved at least some of its main goals.

“With the continued progress we’ve seen on inflation, it is reasonable to expect further cuts in our policy rate,” he said …