The Bank of Canada has just reduced its key overnight rate by an additional 25 basis points (0.25 percentage points), bringing it down to 3%.
This latest reduction marks the sixth consecutive rate cut in 2024, following a series of five earlier reductions. However, today’s move is less aggressive than the two previous 50-basis-point cuts, aligning with expectations for a more gradual pace in future rate reductions. While inflation has fallen below the Bank’s target, ongoing concerns over a potential trade war with the U.S. are prompting a more cautious approach from policymakers.
Rate cuts like these are typically used to boost economic activity. (For more on how the overnight rate impacts mortgages, check out our explanation.)
Want to explore how these new rates could affect you? Connect with our partner Legacy Mortgage Group, or browse the housing market on ComFree.
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