By Canadian Press

BoC expects to cut rates this year, governing council split on timing: deliberations

Mar 20, 2024 | 10:35 AM

OTTAWA — The Bank of Canada expects it will be able to cut interest rates sometime this year, but officials are split on timing.

That’s according to the central bank’s summary of deliberations which details the discussions governing council members had ahead of the March 6 interest rate announcement.

The summary says governing council members agreed rate cuts can begin this year if the economy and inflation evolve in line with the Bank of Canada’s projections.

And while members agreed on the conditions that are needed before lowering the key interest rate, they were split on when there will be enough evidence that those conditions have been met. 

Canada’s inflation rate came in lower than expected for a second consecutive month, reaching 2.8 per cent in February.

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As inflation continues to ease and the economy slows, forecasters continue to expect the Bank of Canada to begin lowering its policy rate around the middle of the year. 

This report by The Canadian Press was first published March 20, 2024. 

The Canadian Press