The Bank of Canada lowered its key interest rate by 0.25 points to 2.5%. This is the lowest level in the past three years. The decision was explained by rising unemployment and easing inflationary pressures.
According to Bank Governor Tiff Macklem, the decision was necessary to maintain balance and was supported by all members of the Council. Despite U.S. tariffs putting pressure on the economy, lowering the rate was deemed necessary.
In recent months, the labor market has lost more than 100,000 jobs, and unemployment has reached its highest level in nine years. The economy contracted by 1.6% in the second quarter, and forecasts for the third quarter are also weak.
Experts say the rate could be cut again in October. The Bank announced that inflation is expected to stabilize around the 2% target level.
Read 'Zamin' on Telegram!
