Bank of Canada Meeting Minutes: Disagreement on Whether to Cut Interest Rates

Jin10 data May 1st news, the minutes released by the Central Bank of Canada show that the Central Bank discussed whether to cut interest rates again earlier this month, but decided not to lower rates considering the uncertainty brought by US tariffs. The minutes state that despite differing opinions, everyone agrees that there is significant uncertainty, and the situation may change quickly. The committee members also unanimously believe that they should provide forward guidance less frequently than before. Members supporting another rate cut mentioned economic weakness and pointed out that recent inflation risks are low. Those who wish to maintain the interest rate argued that they need more time to collect information about the impact of tariffs. However, they all agree that past rate cuts are still functioning throughout the economy, helping to strengthen economic activity while keeping the inflation rate close to 2%. The Central Bank of Canada stated that the committee members unanimously believe that monetary policy should support the economy in the face of tariffs while maintaining its primary focus on price stability.