Canadians hoping for further interest rate cuts from the Bank of Canada recently received some positive news. On Friday, Jerome Powell, Chairman of the U.S. Federal Reserve, announced that the central bank is ready to begin lowering its key interest rate, hinting that multiple cuts could be on the horizon.

During the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, Powell stated that “the direction is clear, and the timing and pace of upcoming rate cuts will depend on incoming data.” While he did not specify when the rate cuts would begin, a quarter-point reduction is widely expected at the Fed’s next meeting in September.

These rate cuts in the U.S. provide the Bank of Canada with greater flexibility to continue lowering rates domestically without the risk of excessive devaluation of the Canadian dollar. In Canada, inflation has once again decreased, dropping from 2.7% in June to 2.5% in July. This trend could pave the way for another quarter-point cut by the Bank of Canada in September.

The Bank of Canada’s key interest rate currently stands at 4.5%, and many analysts anticipate that the Bank will continue a series of cuts through the end of the year.