Bank of Canada lowers interest rate to 3.75%

(October 23, 2024 )


October 23, 2024

The Bank of Canada lowered the interest rate again by 50 basis points to 3.75%, its fourth consecutive rate cut this year, which is the Bank of Canada's largest rate cut, outside the recent pandemic, since the 2009 global financial crisis.

The recent cut in the Bank of Canada's key interest rate by 50 basis points is a significant move aimed at providing immediate relief to borrowers, especially those with variable-rate mortgages. This adjustment not only lowers borrowing costs for current variable-rate mortgage holders but also positively impacts those looking to renew their mortgages. As the key rate influences the overall lending rates across various financial products, Canadians can expect to see a decrease in interest payments, which may ease financial pressures for many households. 

"We took a bigger step today because inflation is now back to the two percent target and we want to keep it close to the target", Bank of Canada governor Tiff Mackem told reporters Wednesday.

Inflation cooled to 1.6% since September's interest rate cut with the Bank of Canada's revised outlook holding inflation around 2% for the foreseeable future. 
Macklem said he expects the rate cut will lead to a boost in spending among businesses and consumers.

CIBC assistant chief economist Avery Shenfield noted to clients that "it would take a significant turn of events to stand in the way of another cut of that magnitude in December"


The Bank of Canada's final interest rate decision of the year comes on
December 11, 2024


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