Today, the Bank of Canada lowered its overnight interest rate to 4.5%. This is welcome news for Canadians and reflects our plan to responsibly create the economic conditions for interest rates to come down. Canada was the first G7 country to cut interest rates in June and is the first G7 country to cut interest rates twice.
This interest rate cut also follows the rate of inflation falling to 2.7% from its peak of 8.1% in June 2022. This marks the sixth straight month that inflation has remained below 3% and shows that our government’s work to stick to responsible fiscal targets is working. The Bank of Canada is also forecasting that as borrowing costs ease, GDP growth in Canada will increase in the second half of 2024 and through 2025.
With the easing of inflationary pressures, borrowing costs, and broad price pressures, our economy is showing signs of strengthening.
For more information, check Bank of Canada’s Press Release here.
Image Source: Yayimages.com
