Bank of Canada considered waiting longer to cut interest rate, deliberations show

The Bank of Canada’s decision to cut the key overnight interest rate by 25 basis points to 2.25 per cent last month was driven by a soft labour market, tepid growth expectations, and a clearer idea of the impact of the trade war initiated by the United States.

The central bank’s governing council determined that the rate cut could help support the economy through the structural change prompted by the trade upheaval, so long as inflation remains in check. However, there were differences of opinion about the timing of the cut, according to a statement of deliberations released Wednesday.