Bank of Canada Cuts Interest Rates, Signals Potential for Further Reductions

The Bank of Canada has cut its benchmark overnight rate by 25 basis points to 4.75%, as expected by most economists. Governor Tiff Macklem stated that there may be further cuts to the policy interest rate if inflation continues to decrease. Bitcoin remained relatively stable at $70,500 after the announcement. The Bank of Canada is the first of the G-7 central banks to begin a cycle of easier monetary policy, with the European Central Bank expected to follow suit. The U.S. Federal Reserve may also cut rates in the near future due to recent economic data showing slowdowns in economic growth and inflation.