The Bank of Canada's interest rate decision highlights at a glance

< br > < span class = "section-news" > 1. Overview of the statement: The unanimous agreement to cut interest rates by 25 basis points to 4.5%, the second consecutive rate cut. There is growing confidence in the factors that will push the consumer price index back down to 2%. A balance needs to be struck between upside risks to inflation and the backdrop of economic weakness. < br > < span class = "section-news" > 2. Interest rate outlook: Bank of Canada Governor Michael McClum reiterated that if inflation continues to slow, further interest rate cuts are more likely. The divergence between Canada and the Federal Reserve on interest rates will not be particularly serious. The Bank of Canada is not on the predetermined track. < br > < span class = "section-news" > 3. Inflation outlook: Persistent excess supply is reducing inflationary pressures. Downside risks are becoming more important in policy decisions. Inflation is expected to reach the 2% target by the end of 2025. Inflation in the United States appears to have returned to a downward trajectory. < br > < span class = "section-news" > 4. Economic outlook: The labor market has cooled significantly. Household consumption is weak. It is not desirable for the economy to be excessively weak, resulting in inflation falling below the 2% target. Unemployment among new immigrants and young adults is a sign of economic weakness. A slowdown in the United States is becoming a reality. < br > < span class = "section-news" > 5. Market reaction: After the announcement of the interest rate decision, the US dollar against the Canadian dollar USD/CAD rose nearly 20 points to 1.3795 in the short term, reaching a maximum of 1.3808 at one point. < br > < span class = "section-news" > 6. Latest expectations: The Canadian money market expects the Bank of Canada to cut interest rates again in September with a probability of about 50%.