The Bank of Canada considered cutting its key interest rate by just a quarter of a percentage point last month, but opted to take a larger step in the face of a weakening economy and falling inflation.
That’s according to the central bank’s summary of deliberations released Tuesday, which details the governing council’s conversations ahead of the Oct. 23 interest rate announcement.
The Bank of Canada ultimately opted for a half-percentage point interest rate cut, bringing its policy rate to 3.75 percent.
“A number of factors were mentioned to support this decision. Members felt increasingly confident that the upside pressures on inflation will continue to decline, so policy did not need to be as restrictive.” the summary said….