Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
The Bank of Canada (BoC) cut its benchmark interest rate to 2.25% on Wednesday, a move that was generally expected by markets. The central bank's most recent policy statement, the first since January, provided a clearer picture of how US trade moves are affecting Canada's economy and inflation outlook.
The Bank of Canada now forecasts 1.2% GDP growth in 2025, 1.1% in 2026, and 1.6% in 2027, indicating a gradual but consistent recovery. Inflation is predicted to hover near the 2% target for the projection period, albeit underlying price pressures remain slightly excessive at roughly 2.5%.
Policymakers highlighted that the current rate level is suitable for stabilizing inflation while cushioning the economy during a period of structural restructuring. However, the Governing Council reaffirmed that it stands ready to change policy if inflation or economic trends depart from expected levels.
