The Bank of Canada cut interest rates for the third time in a row, down 25 basis points amid concerns about weak economic growth

Odaily News The Bank of Canada cut its key policy rate by 25 basis points to 4.25% as expected on Wednesday, its third straight rate cut, citing continued easing of broad inflationary pressures. Canada's headline inflation rate fell to a 40-month low of 2.5% in July, still above its 2% target. But it now appears that the economy is weaker than predicted six weeks ago. "As inflation gets closer to target, we need to increasingly guard against the risk of too much weakness in the economy and too much decline in inflation," said Bank of Canada Governor Macklem. "We are equally concerned about inflation below target and above target." In late July, the Bank of Canada predicted an annualized growth rate of 2.8% in the third quarter, and Macklem said the growth data in June and July meant that forecast was now at risk. He also said that if inflation continues to slow roughly in line with the bank's July forecast, then further rate cuts would be justified. (Jinshi)