The Bank of Canada has been on a mission to combat inflation, and recent data indicates that their efforts are paying off. Inflation fell to 1.6% in September, which is back in line with the central bank’s 2% target. The easing of global oil prices, reduced shelter costs, and improvements in consumer goods pricing have all contributed to this decline.
In response, the central bank decided to take a more aggressive step to keep inflation close to target and support economic recovery. By slashing the rate by 50 basis points, the Bank hopes to stimulate consumer and business spending, which could drive growth in a slowing economy.