BoC Rate Announcement June 5, 2024

Interest rate announcements Bank of Canada cuts rates to 4.75%, signals more to come.

July 27, 2023

​​​​​Bank of Canada's Next Rate Announcement July 24th, 2024


The Bank of Canada has lowered its benchmark interest rate by 25 bps to 4.75%

As widely predicted, the Bank of Canada announced a 25 basis point reduction in its benchmark interest rate today, bringing the key overnight lending rate to 4.75%.

Governor Tiff Macklem and the policymakers opted to lower the benchmark overnight rate to 4.75 per cent, in line with market expectations and economist forecasts in a Bloomberg survey. They expressed confidence in inflation reaching the two per cent target and suggested the possibility of further rate cuts if progress continues.

Tiff Macklem stated, “As evidence of easing inflation becomes more sustained, there is less need for restrictive monetary policy.”

Following the rate cut, government of Canada 2-year note yields dropped by 10 basis points, with bonds rallying. The Canadian dollar also weakened to $1.3711 against the U.S. dollar.

The Bank's statement noted, “Given the ongoing signs of easing inflation, the Governing Council agreed that monetary policy no longer needs to be as restrictive.”

This marks the Bank's first rate reduction since March 2020.

Policy Rate

"The Bank of Canada's decision to decrease the interest rate is a positive step in the right direction. This move will hopefully help alleviate some of the financial pressure on Canadian homeowners and those looking to enter the housing market. We commend the Bank for recognizing the importance of affordability in the current economic climate and hope to see continued efforts to support mortgage holders and prospective buyers.”

Lauren van den Berg, President and CEO of Mortgage Professionals of Canada.

Between now and the July rate decision, there are two more inflation reports, along with updates on jobs, retail, and the release of April's gross domestic product data. Officials will continue to monitor demand, supply, inflation expectations, wage growth, and corporate pricing behavior.

Policymakers have committed to ongoing quantitative tightening and the normalization of the balance sheet.

The next rate announcement is scheduled for Wednesday, July 24, 2024 at 9:45 AM EST.

Recent Rate data

*As of 2021, a change takes effect the day after its announcement.

Past Reports Scheduled for 2024 

BoC Rate Announcement June 5, 2024
Rebel Mortgage Ltd, Caleb V. Kalenuik June 5, 2024
Share this post
Sign in to leave a comment