Bank of Canada officials disagree on when to start cutting interest rates

At a meeting earlier this month, Bank of Canada officials differed on when the central bank should start cutting interest rates. Given the strong performance of Canada's economy, as well as continued inflationary pressures, some members felt They said that the central bank should wait to reduce interest rates. Other members emphasized that inflation has decreased and they are worried about keeping interest rates high for a long time.

Despite these disagreements, officials agreed to keep the key interest rate steady at five percent for the time being. They acknowledged that when the time comes, rate cuts will not happen all at once and will be gradual. Economists widely expect the central bank to begin cutting interest rates in June or July. Canada's inflation rate was 2.9 percent in March, which was within the target range of the central bank (one to three percent). The Governor of the Central Bank, Tif Maklam, said in the press conference on April 10 that there is a possibility of interest rate reduction in June.

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