Canadian bankers do not see need for interest rates to be restrictive

Slowing trend: Trudeau delivers remarks at a Diwali celebration in Ottawa, Ontario. The Canadian Prime Minister announced measures last month which could lead to a population decline and adversely impact total consumption growth. — Reuters

OTTAWA: The Bank of Canada’s (BoC) governing council felt its key borrowing cost was not needed to be as restrictive ahead of its Oct 23 decision to cut rates as it was confident that upside pressures on inflation would continue to decline, minutes show.

The BoC slashed its key policy rate by 50 basis points to 3.75% last month, its fourth cut in a row and the first larger-than-usual move in more than four years, after declaring an almost victory over inflation.