Harder to Cut With Core Inflation Firm, Bank of Canada Says

Bank of Canada officials said it would be tough to cut the policy interest rate further if core inflation remains firm, but acknowledged more easing may be needed if the economy continues to weaken.

Officials discussed cutting borrowing costs by a quarter percentage point earlier this month, but ultimately held the policy rate at 2.75% for a second consecutive meeting, according to a summary of their deliberations released on Tuesday.