On May 1st, minutes of the Bank of Canada meeting showed that the committee had differences on whether to cut interest rates or keep them unchanged. Members who support unchanged interest rates hope to obtain more information about US tariffs and support a wait-and-see attitude; Members who support no changes believe that considering the inflationary pressure brought about by tariffs may soon emerge, another interest rate cut may be premature; Members who support interest rate cuts mentioned that inflation risks have been relatively flat recently, and there are signs that the economy is weakening; Members who support interest rate cuts say that as long as the medium – to long-term inflation expectations remain stable, the central bank has the flexibility to further lower interest rates; Members who support interest rate cuts emphasize the necessity of timely action, as there is a lag in the transmission of monetary policy measures to the economy and inflation.
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