The Bank of Canada has lowered its key policy interest rate for a second consecutive time by 25 basis points to 2.25% amid ongoing weakness in the economy and as inflation pressures ease.   Governor Tiff Macklem said the current policy rate is “at about the right level” to keep inflation in check near 2% while helping the economy through this period of “structural adjustment.”  Scotiabank’s Chief Economist Jean-François Perrault returns to the podcast to break down this decision and what it says about the economy, as well as provide a preview of the upcoming federal budget and explain how it factors into the rate announcement, and much more.  To learn more about the upcoming federal budget and what to look for, read Scotiabank Economics’ report: The Cost of Ambition: Anticipating Canada’s Federal Investment and Austerity Budget.    For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures  Key moments this episode:  00:52 - JF’s main takeaway from the Bank of Canada’s decision to cut its key policy rate for a second time  02:32 - What drove the central bank’s decision to cut?  04:01 - The upcoming federal budget and how it factors into the Bank of Canada’s rate decisions  5:51 - What to expect and look for in the upcoming federal budget announcement in November  7:06 - What does this cut and the overall outlook mean for Canadians?   9:00 - What does this cut, and the central bank’s message that it will be the last cut for a while, mean for those wanting to buy a home? What does this mean for the Canadian housing market?  10:30 - Governor Tiff Macklem said that the weakness in the Canadian economy is “more than a cyclical downturn. It is also a structural transition.” JF breaks down what this means. 14:05 - JF on where the economy goes from here  16:03 JF on the main takeaways from the Bank of Canada’s decision for Canadians