Key interest rate cut for the second time

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