Reported 20 days ago
Some officials at the Bank of Canada were worried that a half-percentage point cut in interest rates could be misinterpreted as a sign of economic trouble. They feared that this unusual reduction would lead to expectations of further large cuts and create an impression of an overly accommodative monetary policy. The bank acknowledged the need for this cut due to ongoing labor market weaknesses and a desire for stronger economic growth, while indicating uncertainty about future cuts and the neutral interest rate that neither restricts nor stimulates economic growth.
Source: YAHOO