Canada surprises markets with quarter-point cut

The Bank of Canada's rate-setting board voted unexpectedly on Tuesday to cut its benchmark overnight rate by 25 basis points to 4.25%.

Markets had priced in rates staying put but the central bank said that since the publication of the Monetary Policy Report in mid-October, there had been "a number of economic and financial developments that have a bearing on the prospects for output and inflation."

Both core and CPI inflation, currently 2.4% and 1.8%, were below the central bank's expectations

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.