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cailianshe news, september 5 (editor: shi zhengcheng)the bank of canada, which is leading the interest rate cut trend among g7 countries, announced on wednesday that it would cut the benchmark interest rate by 25 basis points to 4.25%. this is the third consecutive interest rate cut by the bank at its interest rate meeting since june and july this year.

(source: bank of canada)

at the press conference after the meeting, bank of canada governor steve macklem emphasized his concerns about the economy being too weak and saidas long as inflation continues to slow, it is "reasonable to expect further rate cuts"canada's latest unemployment rate has risen to 6.4%, 2% higher than the low point two years ago.

mccollum said at the press conference:as inflation approaches target, we need to be increasingly vigilant about the risk of the economy being too weak and inflation falling too far. the bank of canada is just as concerned about inflation falling below target as it is about inflation rising above target.”

the bank of canada said in its interest rate decision that the inflation rate in july slowed further to 2.5% as expected. although the economic growth rate in the second quarter (2.1%) exceeded expectations, preliminary indicators showed that economic activity in june and july was relatively weak. as overall inflationary pressures continue to ease, the bank of canada continued to cut interest rates by 25 basis points this time, and it is expected that excess supply in the economy will continue to exert downward pressure on inflation.