The Bank of Canada has dropped its policy rate to 3.75%, cutting it by 50 basis points this morning. This marks the fourth consecutive rate reduction by the central bank this year. In its statement, the Bank said, "If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further." However, it emphasized that the timing and pace of additional cuts will depend on incoming data and its impact on the inflation outlook. As a result of the decision, prime rate, which affects variable-rate mortgages and other loans, is expected to decrease to 5.95% at most major lenders soon. TD Bank, which typically has a slightly higher mortgage prime rate, should see a reduction to 6.10%. Click here to read the Bank of Canada’s full statement. Click here to read the Bank's latest quarterly Monetary Policy Report. The Bank’s next rate decision is scheduled for December 11, 2024. |