Good Morning!
Today, the Bank of Canada lowered its key rate to 4.5% from 4.75%, marking its second cut in a row. This move aims to ease inflation and address economic growth concerns by considering the broader economic picture, not just inflation.
With global supply chains improving and economic growth slowing, high interest rates have kept consumer spending in check. The Bank of Canada is now taking a more balanced approach to monetary policy.
Looking ahead, the Bank is considering another rate cut later this year if inflation continues to drop as expected. They are taking a cautious, step-by-step approach to ensure stability while supporting economic recovery.
Financial experts are watching closely to see how this decision will affect borrowing and investment. As the situation evolves, staying informed is crucial for making sound financial decisions, especially considering most of our largest assets are our homes.
