Another interest rate decision is expected to see a reduction in central bank rates at Canada’s central bank, Tuesday, following a 0.75 per cent drop at the previous interest rate decision in December.

The expectation by many economists is that another half-point cut will be committed, bringing the rate down to one per cent, and following in the footsteps of essentially all other central banks internationally.

“The bank will need to strike a delicate balance between signaling further cuts, and sounding too dovish and allowing the market to get ahead of itself, the statement will undoubtedly maintain the rather dour paragraph describing the economic outlook and the lower profile for inflation.” said a senior economics strategist at TD Securities, according to CBC News.

The Bank of Canada is also scheduled to release their monetary policy update Thursday.

Canadian consumer banks, who are reluctant to even deliver loans to consumers in fear of a true financial crisis in Canada, have not been keeping up with the prime rate cuts - prime rates at consumer banks are at 3.5 per cent, while the rate from the Bank of Canada currently sits at 1 per cent - indicative that these cuts aren’t having a significant effect on the individual consumer.

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