BoC officials split on when to start cutting interest rates, summary shows

OTTAWA — The Bank of Canada is offering more details today about its discussions on rate cut timing.

The central bank released its summary of deliberations, which detailed the governing council’s discussions during its most recent decision. 

The bank held its key rate steady at five per cent but members of the governing council were split on how long the central bank should wait before lowering it.

The summary says some members felt that the bank should take its time before lowering rates, given the Canadian economy’s strong performance as well as ongoing inflationary risks.

Meanwhile, other members emphasized the progress made on inflation and were concerned about keeping interest rates high for too long. 

Economists widely expect the Bank of Canada to begin lowering its policy rate in June or July.

This report by The Canadian Press was first published April 24, 2024.

The Canadian Press