Bank Of Canada Comes Through With Another Rate Cut

On September 4th, the Bank of Canada reduced its policy rate by 25 basis points to 4.25 per cent, continuing its policy of balance sheet normalization (https://www.bankofcanada.ca/2024/09/fad-press-release-2024-09-04/). This is the third rate cut since June (having fallen 75 basis points since then), and more cuts are expected this fall. These rate cuts are cumulative, and so is consumer confidence. The real estate market is shifting. It certainly is not happening overnight, but it is rumbling.

Annual inflation is down, having lowered to 2.5 per cent in July. The Bank is committed to restoring price stability for Canadians, which means more cuts. In fact, depending on how the economy performs, we could see a future rate cut of more than 25 basis points. This is incredible news that will spur spending in every aspect of the economy.

The next scheduled date for the Bank of Canada announcing the overnight rate target is October 23rd. As we see additional cuts, we will also see increased demand for housing, along with price rises. If you are considering a new home or condominium purchase, sooner is better than later!