On Wednesday the Bank of Canada reduced its target for the overnight rate to 4¼ percent. The Bank Rate at 4½ percent and the deposit rate at 4¼ percent.

The global economy expanded by about 2½ percent in the second quarter, consistent with projections in the Bank’s July Monetary Policy Report.

In Canada, the economy grew by 2.1 percent in the second quarter, led by government spending and business investment.

As expected, inflation slowed further to 2.5 percent in July.