Bank of Canada open to further half-point rate cut as consumer confidence rises

Bank of Canada Governor Tiff Macklem stated the bank is ready to cut interest rates by another half-point if needed. This follows a recent cut that lowered the benchmark rate to 3.75 percent, after three smaller cuts since June. Macklem noted that recent rate cuts are boosting consumer confidence and household spending. He emphasized the bank is monitoring economic conditions closely to determine future rate adjustments. During a Senate hearing, Macklem discussed Canada’s productivity issues, citing barriers like interprovincial trade and slow regulatory processes. He also clarified that current government spending is not hindering efforts to control inflation, which is now back to the target level.