What the Bank of Canada’s interest rate cut means for you

The Bank of Canada lowered the interest rate to 4.75 per cent on Wednesday – the first rate cut in four years. As the country’s central bank aims to get the inflation rate closer to 2 per cent, further cuts could be on the horizon. Realtors are hoping the rate cut will reignite a stagnant housing market, by possibly allowing more people to qualify for mortgages and increasing the number of potential buyers.

Mark Rendell is a journalist with The Globe’s Report on Business. He joins the show to discuss the art and science behind rate cuts, what the current cut means for people and the economy and how the Bank of Canada might move forward.

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