The Bank of Canada has cut its benchmark interest rate by 25 basis points, marking the second cut in as many months, to 4.5%. Scotiabank’s Chief Economist Jean-François Perrault returns once again to break down the decision and its implications.
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.
Key moments this episode:
1:00 – Why Canadians should “take a lot of comfort” from the latest announcement
1:42 – What might have given the Bank of Canada assurance to make a cut
3:13 – Will we see back-to-back cuts in the next two meetings as well?
4:21 – What are the biggest risks that could keep inflation from coming down?
6:20 – The state of the housing market – a large factor when it comes to inflation in Canada
8:06 – What about risk around a potential recession? Are we out of the woods?
9:37 – What is the impact of the U.S. and Canadian central banks diverging?
11:30 – The 3 key takeaways for Canadians from this announcement
