The Bank of Canada Governor, Tiff Macklem, indicated that it is reasonable to expect further interest rate cuts, following the bank's progress in reducing inflation to its target of 2%. This marks a shift in tone from previous statements, as inflation has consistently declined, with the consumer price index in August falling to its lowest level since February 2021.

Macklem emphasized that future rate cuts will depend on incoming data, as the bank aims to maintain inflation within the 1-3% range. The bank has already lowered its benchmark borrowing rate by 75 basis points since June, with markets predicting a potential 50 basis point cut in October and another in December.

Macklem expressed satisfaction with inflation returning to the 2% target but highlighted the need to monitor growth, which is expected to slow. The bank will focus on consumer spending, business hiring, and investment in its future assessments.