However, others “placed more emphasis on the progress made in bringing inflation down and were concerned about keeping rates elevated for too long given indicators of excess economic slack.”
Despite this division, the council unanimously decided to keep the interest rate steady at 5% for now. They also agreed that future rate cuts would likely be gradual, considering the risks to the outlook and the time needed to achieve sustained inflation control.
“While there was a diversity of views about when conditions would likely warrant cutting the policy rate, they agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target,” the summary said.
Canada’s inflation rate cooled to 2.9% in March, moving back into the BoC’s 1-3% control range after over a year of overshooting. Core measures have also shown easing price pressures in recent months.
Read more: What should brokers be advising clients on the interest rate outlook?
