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Bank of Canada lowers Interest Rates by 0.5%

Oct 23, 2024

Here are some main takeaways from the BOC statement:

The Bank of Canada has lowered its overnight rate target to 3¾%, with the Bank Rate at 4%. Global economy is expected to grow about 3% over the next two years, with stronger growth in the U.S. but a weaker outlook for China.

 

Here are some main takeaways from the BOC statement:

  • CPI inflation dropped to 1.6% in September

  • GDP growth is expected to be 1.2% in 2024 and 2.1% in 2025

  • Oil prices are about $10 lower than expected

  • Canadian economy grew around 2% in the first half of the year, with a forecast of 1¾% for the second half.

  • Overall consumption is up but it's declining per person

  • Exports have increased (Trans Mountain Expansion pipeline)

  • Unemployment rate is up (6.5% in September)

 

BOC hopes that lowered interest rates will encourage consumer and business spending. Further rate cuts may occur depending on economic conditions. The next rate announcement will be on December 11, 2024, with a full economic outlook coming on January 29, 2025.

 

Click here for the full report: Bank of Canada reduces policy rate by 50 basis points to 3¾% - Bank of Canada

 

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