The Bank of Canada lowers key interest rate to 4.75%

(June 05, 2024 )

The Bank of Canada cut its benchmark interest rate by 25 basis points, delivering its first rate decrease since March 2020.

Homeowners renewing their mortgages, or those with existing variable-rate loans tied to the central bank’s policy rate will immediately see their interest rates drop. "

Bank of Canada governor Tiff Macklem said that if inflation continues to ease, “it is reasonable to expect further cuts to our policy interest rate.” But he added that the central bank would take its decisions “one meeting at a time.”

Economists weighing in on the first round of cuts were split on what path The Bank of Canada will take next with BMO and TD Bank economists predicting a pause on cuts in July, resuming in September, and RBC and CIBC predicting another 25 basis point decrease in July.

When asked by reporters on Wednesday whether he was prepared to further cut rates at the next meeting, Macklem reiterated that the timing of future cuts is dependent on the data they receive, and "Let's just enjoy the moment for a little bit."

The Bank of Canada's next interest rate decision comes on July 24

For any questions you may have about the recent rate cuts and how it effects you, give us a call at 604-309-5453