Bank of Canada Lowers Policy Rate to 2.5%
  
By Dr. Sherry Cooper - Chief Economist, Dominion Lending Centres
Today, the Bank of Canada lowered the overnight policy rate by 25 bps to 2.5% as was widely expected. Following yesterday's better-than-expected inflation report, the Bank believes that underlying inflation was 2.5% year-over-year.
Through the recent period of tariff turmoil, the Governing Council has closely monitored the risks and uncertainties facing the Canadian economy. Three developments triggered the Bank's rate cut. Canada's labour market softened further. Upward pressure on underlying inflation has diminished, and there is less upside to risk to future inflation with the removal of most retaliatory tariffs by Canada.
Considerable uncertainty remains. However, with a weaker economy and less upside risk to inflation, the Governing Council deemed that a reduction in the policy rate was appropriate to better balance the risks going forward.
"The Bank will continue to assess the risks, look over a shorter horizon than usual, and be ready to respond to new information."
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Exploring Pike Place!
I had a great time riding the famous bronze pig at Pike Place Market in Seattle while celebrating a good friend’s birthday. It was a fun and silly moment during our 3 hour downtown Seattle food tour. The market was full of energy, with fresh produce, seafood, hidden restaurants, and food stalls around every corner. I highly recommend the tour. It was something different, filling for both heart and belly, and a greatway to explore the city. Let me know if you want my tour guide’s contact info!
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