The Bank of Canada has announced yet another interest rate cut and this time, it’s a big one: a 50-basis-point reduction that brings the policy interest rate to 3.75%. As always, here to tell us what this latest announcement means for Canadians is Scotiabank’s Chief Economist Jean-François Perrault.
For an up-to-date breakdown of the Bank of Canada’s key interest rate and its change over time alongside inflation numbers, visit our interest rate page.
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Key moments this episode:
00:59 - JF’s initial thoughts of the Bank of Canada announcement.
2:03 - How unusual is a 50-basis-point cut for the central bank?
2:55 - Why did the Bank of Canada push forward with a large cut?
4:20 - JF weighs in on whether this was the right move.
6:00 - How will Canadians feel the impact of this interest rate cut?
7:54 - How will businesses feel the impact?
8:44 - How long does it take for these cuts to have a tangible impact?
9:37 - What are the risks that could drive inflation back up?
11:43 - What’s the impact of inflation becoming too low?
12:33 - What does JF expect from the Bank of Canada’s next decision in December?
13:50 - What is the current outlook for the economy in 2025?
15:44 - What are the key takeaways for Canadians from this announcement?
