The Bank of Canada cut their Interest Rates as expected by 50-basis points to bring the bank rate below 4% in what their fourth consecutive cut as the central bank continues the battle to keep inflation closer to their target.
Canada's inflation in September hit 1.6% which is notably below their 2% target and therefore justified a more aggressive rate cut. The main contributing factor towards slow growth in prices was due to a drop in energy prices, but of course as we move through the winter energy prices will no doubt increase and therefore it wouldn't be a surprise to see a slight rise within inflation at some point.
