1139 ET - The Bank of Canada has with its latest quarter point move cut its policy rate to 3%. That's just below the top end of the central bank's 2.25-3.25% neutral range, though still above Oxford Economics' 2.75% neutral estimate. Economists Tony Stillo and Michael Davenport says that with underlying inflation trending around 2% and ample slack still in the economy, they expect further quarter point cuts at the next three policy meetings, tariff risks aside. They note the BoC's baseline outlook doesn't include new tariffs, though it emphasized the stagflationary nature of tariffs and why monetary policy is an ineffective tool to deal with them. (robb.stewart@wsj.com; @RobbMStewart)
(END) Dow Jones Newswires
January 29, 2025 11:40 ET (16:40 GMT)
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