Market UpdatesMarket Updates 11 December 2024

Bank of Canada Reduces Policy Rate by 50 Basis Points to 3.25%

The Bank of Canada (BoC) has made a significant move in its final interest rate announcement of 2024, cutting the key policy rate by 50 basis points to 3.25%14. This marks the fifth consecutive rate cut since June, signaling the central bank’s ongoing efforts to stimulate economic growth and maintain inflation near its 2% target.

 

Key Points of the Announcement

  • New Policy Rate: 3.25%, down from 3.75%
    Inflation Status: Currently at 2%, matching the Bank of Canada’s target
    Economic Context: Q3 GDP growth was 1%, below projections
    Labour Market: Unemployment rate rose to 6.8% in November

 

Impact on the Real Estate Market

This rate cut could have significant implications for the Canadian housing market:

  • Mortgage Rates: Variable mortgage rates are expected to fall by 0.5%
    Affordability: Lower rates could improve buying power for some homebuyers
    Market Activity: The cut may reinvigorate the housing market, potentially leading to increased sales and price growth

 

What’s Next?

The Bank of Canada’s next interest rate announcement is scheduled for January 29, 202510. Market watchers will be closely monitoring economic indicators and the Federal Reserve’s decisions in the coming weeks to gauge the potential for further rate adjustments.

 

Final Thoughts on the Bank of Canada’s Decision

While this rate cut from the Bank of Canada aims to boost economic activity, its full impact on the real estate market and broader economy remains to be seen. Prospective homebuyers and investors should stay informed and consider how these changes might affect their plans. As always, consulting with financial and real estate professionals is advisable when making significant decisions in light of these economic shifts.

 

Read the Press Release.

 


 

Whether you’re a homeowner, prospective buyer, or real estate investor, understanding these market changes is crucial. As your trusted REALTOR®, I’m here to help you navigate these shifts and make informed decisions! Call, text, email, or DM me to chat about how this announcement affects your real estate plans!

 

For more information, contact:

 

Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca