Today’s decision predictably follows the Fed’s easing by a day and represents a trend reversal in interest rates. The last five overnight rate changes in July 2017, September 2017, January 2018, July 2018 and October 2018 were hikes of 25 basis points each, and the last cut happened in the summer of 2015. The new rate level of 1.25% may not represent the floor. “The outlook is clearly weaker now than it was in January. As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target.” The Bank of Canada’s statement of ... (full story)