The Central Bank of Canada, as expected, cut interest rates by 50 basis points, and the pace of interest rate cuts is expected to slow down.

Jinshi data, December 11th news, the Canadian Central Bank cut interest rates significantly for the second time this month and hinted that policymakers are prepared to slow down monetary easing. The bank cut interest rates by 50 basis points to 3.25%, pushing the cost of borrowing to the upper end of their expected range for the neutral interest rate. However, they also suggested that after the significant drop in interest rates expected by the market and most economists, there may be a smaller rate cut again in 2025. Officials abandoned the previous statement that they expected further drops in borrowing costs. “In the case of a significant drop in the policy interest rate, we expect that if the economic development generally meets expectations, monetary policy will take a more gradual approach,” said Carolyn Wilkins, Senior Deputy Governor of the Bank of Canada, in a prepared speech. “Looking ahead, we will assess the need to further lower the policy interest rate step by step.”