Explore the Bank of Canada’s Latest Interest Rate Cut and Its Potential Impact on Canadian Mortgage Holders
Introducing the August 2024 edition of our Chartbook Market Comment slides.
Last week, the Bank of Canada announced a 25 basis point cut to its overnight policy interest rate, bringing it down to 4.5%. The Bank highlighted that growth has moderated across major economies, with a noticeable slowdown in the United States. Inflation, while moderated, remains above target levels globally. In Canada, GDP growth for the first half of the year is projected to be around 1.5%. Rising unemployment and increased supply amid weak demand suggest economic slack that could help reduce inflation. This rate cut offers potential relief for Canadian mortgage holders, especially those facing refinancing in 2024 and 2025, though the Bank’s ability to continue lowering rates hinges on future inflation and economic conditions… CONTINUE READING.
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