The Bank of Canada lowered its key lending rate by 25 basis points to 3% on average.
This is already the eighth decrease in rates since March 2020, when the bank began implementing monetary policy to combat the aftermath of the COVID-19 pandemic.
"The Bank of Canada categorically stated that it anticipates a hastening of inflation in the near term in the second half of 2022," the Central Bank's statement said.
This decision was made due to the slowdown in global economic growth and other factors affecting the Canadian economy.
"We do not see compelling evidence for persistent inflation inertia and believe further increases in the key rate are not excluded," the Bank added.
