Bank of Canada Cuts by 25 basis points, to 4.75% as Economy and Inflation Slowed. QT Continues

By Wolf Richter – Wolf Street

“With continued evidence that underlying inflation is easing,” the Bank of Canada said today that “monetary policy no longer needs to be as restrictive,” and it cut policy interest rates by 25 basis points, as widely expected.

But QT will continue, the statement said. The BOC has already shed 64% of the securities it had added during the pandemic.

It cut the target for its overnight rate to 4.75%; the Bank Rate to 5.0%, and the deposit rate to 4.75%.