Cuts rates as inflationary pressure continues to ease (Il Sole 24 Ore Radiocor) - Ottawa, 04 Sep - Inflation in Canada slowed further to 2.5% in July, the central bank said, adding its preferred measures of core inflation averaged around 2 % and the share of components of the consumer price index growing above 3% is roughly at its historical norm.

It said inflation remained elevated in some other services.

With continued easing in broad inflationary pressures, Governing Council decided to reduce the policy interest rate by a further 25 basis points. Excess supply in the economy continues to put downward pressure on inflation, while price increases in shelter and some other services are holding inflation up, it said.

"Governing Council is carefully assessing these opposing forces on inflation. Monetary policy decisions will be guided by incoming information and our assessment of their implications for the inflation outlook," it said.

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(RADIOCOR) 04-09-24 16:45:22 (0436) 5 NNNN