The Bank of Canada has cut its policy rate by 25 basis points to 4.75%, as we thought it would. Around 20bp of the 25bp cut were priced ahead of time, with around 21 out of 30 economists polled by Bloomberg expecting the move. The statement acknowledges that "indicators of the breadth of price increases across components of the CPI have moved down further and are near their historical average” while "recent data has increased our confidence that inflation will continue to move towards the 2% target.” As a result, the BoC took the view that “monetary policy no longer needs to be as restrictive”. In the ... (full story)