Bank of Canada Cuts Rate by 50 Basis Points to 3.75%, Signals Further Easing

Oct 23, 2024, 02:06 PM

On October 23, 2024, the Bank of Canada announced a 50 basis point cut to its key interest rate, reducing it from 4.25% to 3.75%. This marks the central bank's largest rate cut in over four years and follows three consecutive 25 basis point cuts earlier this year. The decision, which meets economist expectations, comes amid a slowing economy and inflation returning to the Bank's target of 2%. Governor Tiff Macklem stated that 'price pressures are no longer broad-based' and indicated that further rate reductions are possible if the economy evolves as forecasted. The rate cut is expected to impact interest rates charged for business and consumer loans, including mortgages.