The Bank of Canada cut its key interest rate for the second straight time, bringing its key rate down to 4.5 per cent.

Forecasters say slowing inflation and a weak economy justified a second consecutive cut by the central bank.

After a historic run-up, the central bank lowered its policy rate for the first time in June, bringing it down from five per cent to 4.75 per cent.

Governor Tiff Macklem signalled at the time that if inflation continues to ease, it would be reasonable to expect more rate cuts.

Last week, Statistics Canada reported the annual inflation rate ticked back down to 2.7 per cent in June after flaring up again in May.

Weak economic conditions have also slowed activity in the job market, bringing the unemployment rate up to 6.4 per cent last month.

This report by The Canadian Press was first published July 24, 2024.