The Bank of Canada (BoC) has cut its interest rate for the third consecutive time, reducing it to 4.25% amid a backdrop of stalling economic growth and rising unemployment, which increased to 6.6% in August. The governing council is divided on the inflation outlook, with some members expressing concern over downside risks linked to potential economic and labor market weaknesses, while others feel the risks are balanced due to high shelter and service costs. The annual inflation rate reached the BoC's target of 2%, the lowest since February 2021, leading to speculation about further rate cuts in the upcoming meetings. Money markets are anticipating a 46% chance of a 50 basis point cut in October. The BoC has indicated that its decisions will be data-driven, with no pre-determined path for interest rates. As the situation unfolds, the BoC's strategies may provide insights for central banks globally as they navigate similar economic challenges.