Many Canadians breathed a sigh of relief on June 5 when the Bank of Canada (BoC) lowered its key interest rate to 4.75% and again on July 24 when it dipped to 4.50%.
These were the central Bank’s fourth and fifth updates of 2024. These consecutive rate cuts came more than four years after the last one, and after six long rate holds at 5% (since July 2023).
We still have three scheduled announcements left this year. A recent forecast predicts that the overnight interest rate will continue to fall, reaching 3.75% by the final one.
With some cautious optimism, there’s no denying a new hope has bloomed about further rate cuts coming. Recent US inflation data looks promising, and its effects almost always seep into Canada.
The Bank of Canada building in Ottawa (Gary A Corcoran Arts / Shutterstock.com)
Mortgage brokerage Ratehub.ca told Daily Hive this US inflation data has renewed expectations of rate cuts in our southern neighbour, which, in turn, increases the likelihood of the same in Canada.
Penelope Graham, mortgage expert at Ratehub.ca, said these numbers give the BoC “further reassurance that inflation is trending in the right direction.”
She shared that bond markets are reacting favourably to rate cuts, which has put downward pressure on fixed mortgage rates.
Staying in the know is key for mortgage owners and aspiring homebuyers.
Keep up with BoC announcement dates
The BoC’s announcements alternate between pure interest rate updates and rate updates in conjunction with monetary policy reports and commentary.
The Bank is expected to release a rate-and-report combo on July 24.
In the unlikely scenario that a cut is not announced in the next update, the BoC’s commentary should help squash or strengthen hopes for a leaner overnight rate.
On Tuesday, August 6, the Bank shared its announcement schedule for 2025.
Those keen on staying on the pulse of the market should follow the BoC X account and look at morning updates on the following dates:
- Wednesday, October 23, 2024
- Wednesday, December 11, 2024
- Wednesday, January 29, 2025
- Wednesday, March 12, 2025
- Wednesday, April 16, 2025
- Wednesday, June 4, 2025
- Wednesday, July 30, 2025
- Wednesday, September 17, 2025
- Wednesday, October 29, 2025
- Wednesday, December 10, 2025
All announcements typically drop at 9:45 am ET.
Keep up with what experts think about Canadian markets and upcoming interest rate updates on Daily Hive.