Date: September 4, 2024
Category: Blogs,Mortgage Tips & Advice,Newsletter
Bank of Canada Cuts Rates Again! 🎉
The Bank of Canada has lowered its policy interest rate by 0.25% to 4.25%. This marks the third rate cut in 2024, bringing relief to Canadian borrowers and signalling a shift towards less restrictive monetary policy.
Key Highlights:
– Mortgage Rates: If you are in a variable mortgage, you will see a decrease in the interest you pay each month. If you are in an adjustable-rate mortgage, you will see a reduction in your interest and mortgage payment. If you are in a fixed-rate mortgage, this does not directly relate to your rate, but we anticipate this will catch up with fixed rates as well.🏡.
– Inflation is continuing to ease, with July’s rate at 2.5%, close to the Bank’s target.
– Shelter Costs: Although still high, inflation in housing prices is finally showing signs of slowing down 🏠.
– Economic Growth: The Canadian economy grew by 2.1% in Q2, driven by government spending and business investment, though recent data suggests a possible slowdown 📉.
– Labour Market: Employment growth has stalled, with a rising unemployment rate of 6.4%. This could help moderate wage inflation 💼.
What’s Next?
– The Bank of Canada is expected to cut rates again in October and December, bringing the overnight rate down to 4.0% by year-end, and potentially 2.75% next year.
Stay tuned for more updates, and feel free to reach out if you have any questions about how this impacts your mortgage or financial plans! 📞
The next rate announcement date is October 23, 2024.
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