Canada cuts rates amid rising joblessness and sticky inflation
Experts say state of economy puts central bank in a difficult position as it eases by 25bp
Canada’s central bank today (September 17) lowered rates by 25 basis points to 2.5% in response to increased joblessness, while inflation remained above the 2% midpoint of its 1–3% target.
At a press conference following the decision, Bank of Canada (BoC) governor Tiff Macklem said the softening labour market – unemployment rose from 6.9% in July to 7.1% in August – showed the balance of risks had shifted.
“The inflation picture hasn’t really changed a great deal since where we were last January,”
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