Bank of Canada's official announcements and press releases

Bank of Canada Cuts Rate from 4.25% to 3.75%, Largest Cut This Year, Signals More Easing

Oct 23, 2024, 01:48 PM

The Bank of Canada has cut its key interest rate by 50 basis points to 3.75%, down from 4.25%, as announced at 10:30 am. This marks the central bank's third consecutive and largest rate cut this year, aimed at boosting economic growth amid signs of a slowing economy and declining inflation, which stands at 1.6%. The rate cut will impact interest rates charged for mortgages, small businesses, and other consumer loans. The Bank projects CPI inflation to average 2.5% in 2024, 2.2% in 2025, and 2.0% in 2026, and has left its 2024 growth forecast unchanged at 1.2%. Governor Tiff Macklem stated, "We took a bigger step today because inflation is now back to the 2 percent target and we want to keep it close to the target." The central bank signaled that further rate cuts may be forthcoming if the economy evolves as projected, with timing and pace guided by incoming data.