Bank of Canada drops key interest rate to 4.25%

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Bank of Canada
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Earlier this morning, the Bank of Canada (BOC) announced their third rate cut of the year so far.



The Bank of Canada announced that it is dropping its key interest rate at 4.25%, with the bank rate at 4.5% and the deposit rate at 4.25%.

“With continued easing in broad inflationary pressures, Governing Council decided to reduce the policy interest rate by a further 25 basis points,” said the Bank of Canada in a release. “Excess supply in the economy continues to put downward pressure on inflation, while price increases in shelter and some other services are holding inflation up.”

Inflation is slowly going down to the 2% target set by the Bank of Canada, but there are some warning signs across the current economic landscape.



“In Canada, the economy grew by 2.1% in the second quarter, led by government spending and business investment. This was slightly stronger than forecast in July, but preliminary indicators suggest that economic activity was soft through June and July.”

The next scheduled date for announcing the overnight rate target is October 23, 2024.

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