The Bank of Canada could begin lowering its key interest rate as soon as its next decision, governor Tiff Macklem said after the central bank decided to hold it steady for now.

“Yes, it’s within the realm of possibilities,” Macklem said in response to a question about the possibility of a rate cut at its June 5 announcement.

The Bank of Canada kept its key interest rate at five per cent Wednesday and said that it’s begun to see the economic conditions necessary to lower interest rates.

Economic data since January has increased the central bank’s confidence that inflation will continue to slow even as economic growth picks up, governor Tiff Macklem said.

While the Bank of Canada’s conditions to begin lowering interest rates have been met, it needs to see price pressures ease for longer to make sure the decline in inflation is sustained.