The Bank of Canada delivered its third consecutive interest rate cut Wednesday, bringing its key lending rate to 4.25 per cent.

The quarter percentage point rate cut was widely expected by forecasters, given ongoing softness in the economy and easing inflation.

In his written remarks, governor Tiff Macklem says the central bank香蕉视频直播檚 decision reflected two considerations.

香蕉视频直播淔irst, headline and core inflation have continued to ease as expected,香蕉视频直播� Macklem said.

香蕉视频直播淪econd, as inflation gets closer to target, we want to see economic growth pick up to absorb the slack in the economy so inflation returns sustainably to the two per cent target.香蕉视频直播�

The Bank of Canada noted that while the economy grew at a faster pace than expected in the second quarter, preliminary data for June and July suggest economic activity slowed.

Macklem reiterated that if inflation continues to ease as expected, it is 香蕉视频直播渞easonable香蕉视频直播� to expect more rate cuts.

Canada香蕉视频直播檚 annual inflation rate has been below three per cent for months, reaching 2.5 per cent in July.

With the central bank香蕉视频直播檚 target rate in sight, Macklem has been stressing the importance of balancing the upside and downside risks ahead.

香蕉视频直播淭here is a risk that the upward forces on inflation could be stronger than expected,香蕉视频直播� Macklem said.

香蕉视频直播淎t the same time, with inflation getting closer to the target, we need to increasingly guard against the risk that the economy is too weak and inflation falls too much.香蕉视频直播�