The summary of the debate that led to the June 5 rate cut shows policymakers wavered before opting to go for it. There was concern that inflation could get stuck at the higher end of the central bank’s target zone, prompting consideration of whether it would be wiser to wait for more assurances that inflation has been truly beaten. (The Logic) 

Talking point: Ultimately, governor Tiff Macklem and his five deputies agreed there had been “sufficient progress” in their fight against inflation to justify cutting the benchmark rate a quarter point to 4.75 per cent. Still, the summary shows policymakers haven’t settled on a plan for future rate cuts. Some members of the Bank of Canada’s governing council were “more focused” on weaker economic growth, while others “put more weight” on the possibility that elevated wage growth and a housing market rebound could stoke inflation. The Bank of Canada is prepared to cut rates again on July 24, but only if the data between now and then support its bet that inflation will continue to slow.