Key Rate Cut to 4.5%

With inflation continuing to head lower, our economy moderately growing, and unemployment numbers edging up, it was no surprise that, on July 24th, the BoC cut the Key Rate by another .25%. Two consecutive cuts now have the Key Rate at 4.5%. 

Surprisingly, in the first week of August, world stock markets rolled down fast, but by the next week were bouncing back up. Now, almost universally, Central Bankers are talking of rates heading lower, faster, as they look to calm and stabilize markets.

Will financial markets level and hold in anticipation of coming rate cuts? Could we see a 3.75% rate by year-end? Maybe. Already one leading Canadian economist is suggesting that there may be a Key Rate cut at each of the next three BoC meetings this year. This would be a welcome relief for households across the country.

As you enjoy these sunny days, you may be thinking of a move this Fall. Let’s talk about how interest rate moves could affect your timing. Count on us for real estate knowledge and insight, as well as sharp negotiating. We invite your call.