BOC lowers interest rate
Posted by Tanya Rocca on
Bank of Canada Cuts Interest Rate to 3%: What It Means for Real Estate
The Bank of Canada has lowered its interest rate by 25 basis points to 3%, citing concerns over potential economic fallout from trade tensions with the U.S. While inflation remains stable at 2% and consumer spending is on the rise, the uncertainty surrounding tariffs could slow economic growth and put upward pressure on prices.
If the U.S. moves forward with a 25% tariff on Canadian goods, and Canada retaliates, GDP could take a hit of up to 3 percentage points. This could lead to weaker economic output and a further depreciation of the Canadian dollar. The central bank acknowledges that monetary policy alone cannot counteract these challenges, but the rate cut aims to…
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