Following the rate announcement, governor Tiff Macklem said the Bank of Canada had more confidence that inflation was moving closer to its two per cent target, citing various indicators that suggest price pressures have retreated.
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Economists say incoming inflation data will heavily influence the pace of future interest rate cuts.
Looking ahead to the next interest rate announcement on July 24, TD director of economics James Orlando said the next two inflation reports could signal the way for another rate cut.
“It will open the door for potentially the Bank Canada deciding to go back-to-back on rate cuts,” Orlando said.
Porter agrees, noting it would probably take a “bad reading, either this month or next to stop the Bank of Canada from cutting.”
