The Globe and Mail reports in its Monday, July 22, edition that the Bank of Canada is expected to cut interest rates again this week due to lower inflation and slow economic growth. The Globe's Mark Rendell writes that the BOC started reducing its policy rate last month, bringing it down to 4.75 per cent from 5 per cent -- marking the first decrease in four years. Analysts and traders widely believe the BOC will implement another quarter-point cut this Wednesday. The highest interest rates in two decades have been effective in reducing consumer spending, stabilizing the overheated housing market, and balancing supply and demand in the economy. As a result, consumer prices have been more stable, with inflation staying below 3 per cent since the beginning of the year, down from a peak of 8.1 per cent two years ago. With inflation nearing the BOC's 2-per-cent target and the Canadian economy stagnant, current interest-rate levels appear too high. The question is how quickly the BOC will act to bring borrowing costs back to a more neutral level. Centre on Financial and Monetary Policy director Jeremy Kronick says: "If you look at the trend, it's pretty good. Inflation has gone down and the economy is definitely softening."