Economy

In a surprising move to tame inflation, the Bank of Canada has cut its overnight lending rate by 25 basis points to 4.75%. This Bank of Canada rate cut comes earlier than anticipated, signaling the central bank’s urgency to bring stubbornly high inflation under control.

While the April inflation rate of 2.7% showed a slight decrease from March, it remains above the Bank of Canada’s target of 2%. By lowering borrowing costs, the rate cut aims to ease inflationary pressures and support the Canadian economy’s growth.