The Bank of Canada’s governing council expects its second straight outsized interest rate cut helped it turn a corner in its fight to tame inflation, but it is watching the economy closely amid weaker than expected growth.
The central bank’s summary of deliberations released Monday offers a glimpse into the council’s discussions in the lead up to the Dec. 11 rate cut, which lowered its key interest rate by half a percentage point.
Members considered only cutting by a quarter-point, but ultimately brought the rate down to 3.25 percent in a bid to bring it closer to its so called neutral rate, where it is neither slowing nor speeding up economic growth….