Bank of Canada cuts interest rates again amid mixed global economic outlook

The Bank of Canada today cut its benchmark overnight rate to 3.75%. This brings the Bank Rate to 4% and the deposit rate to 3.75%. The central bank continues its policy of normalizing its balance sheet. It continues to expect the global economy to grow at around 3% over the next two years. Economic performance in the US appears stronger than previously forecast, while the economic outlook for China remains weak. Economic growth in the euro area has also been subdued, but a slight improvement is expected next year. Inflation in developed countries has fallen in recent months and is currently hovering around central bank targets.