The True Post (Web News) The Bank of Canada has forecast a further cut in its policy rate, likely on June 5, 2025, to support the economy.
The decision is being made in view of the economic slowdown, escalating trade disputes and high inflation. The Bank of Canada is forecasting a rate cut in view of the economic slowdown, escalating trade disputes and high inflation. Bank of Canada Governor Tiff McCallum said in a recent statement that further rate cuts could be made if inflation continues to decline. The Canadian economy grew at an annual rate of 2.6% in the fourth quarter of 2024, which is higher than the Bank of Canada’s forecast. The Bank of Canada has said in its forecast that inflation could reach 2% by the end of 2025, provided that trade disputes subside and the economy stabilizes. The potential rate cut is an important step to support the economy and bring inflation to the bank’s target of 2%. The decision is being made in light of trade disputes and an economic slowdown, and will have an impact on the cost of borrowing, consumer purchasing power, and overall economic activity.
