Date: July 24, 2024
Category: Blogs,Mortgage Tips & Advice,Newsletter
Bank of Canada Lowers Policy Rate Amid Easing Inflation and Steady Growth
Today, the Bank of Canada (BoC) announced a 25 basis point cut in its policy interest rate. This is the second consecutive rate cut this year and brings the overnight rate down to 4.50% 🎉
This means that all adjustable-rate mortgages will see a decrease in their monthly payments. I want to remind everyone that this rate announcement has a direct impact on variable-rate mortgages and not on fixed-rate mortgages. Yes, there may be some reduction in fixed-rate mortgages but not as a direct result of this .25% reduction.
A few key points about today’s announcement
📉 Policy Rate Cut: The Bank of Canada has reduced its policy rate by 25 basis points to 4.5%. This move aims to support economic stability as inflation trends downward globally.
🌍 Global Growth: The global economy is expected to grow at a steady 3% annually through 2026, reflecting a balanced recovery.
📊 Inflation Trends: Inflation is easing worldwide, with notable progress in the US.
🏠 Canadian Economy: Canada saw 1.5% growth in the first half of 2024, with expectations of stronger growth in the latter half.
👷♂️ Labour Market: The unemployment rate stands at 6.4%, with wage growth starting to moderate.
📈 Inflation Forecast: CPI inflation in Canada is projected to stabilize around 2% by 2025.
For those of you interested in the full BoC update, click here for the link 🔗
Feel free to reach out if you have any questions about mortgages or how this news might affect your financial plans!
The next rate announcement date is September 4, 2024, 📅.
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