What to Expect from the Bank of Canada’s Upcoming Interest Rate Announcement
Have you been keeping a close eye on the Bank of Canada’s interest rate decisions this year? You’re not alone. Homeowners and potential buyers across Canada have welcomed the recent rate cuts with relief. With only two rate announcements left for 2024, including one this month, what should we anticipate next?
When is the next Bank of Canada interest rate announcement?
The Bank of Canada’s next interest rate announcement is set for October 23rd, and all eyes are on whether we’ll see another rate drop.
Will interest rates decrease again?
So far this year, interest rates have been held steady at 5% during the Bank’s first three announcements in January, March, and April due to inflation concerns. However, starting in June, we’ve seen rates lowered by 25 basis points in each subsequent announcement, bringing the current rate to 4.25%.
Many experts believe the Bank of Canada could announce another 25-basis-point cut this month, though some speculate we could even see a larger reduction of 50 basis points.
What could rates look like by year-end?
Forecasts from major banks vary. CIBC expects interest rates to drop to 3.50% by the end of the year, which would require significant cuts at the remaining announcements. Meanwhile, TD Bank and Scotiabank predict a slightly more modest decrease to 3.75% by year’s end. Either way, the trend toward lower rates is expected to continue into 2025, providing more opportunities for buyers to enter the market as mortgage rates adjust.
When is the final interest rate announcement of 2024?
The last rate announcement of the year will be on December 11th, and the first announcement of 2025 is scheduled for January 29th.
If you're considering buying or selling in this shifting market, now is the time to act. Reach out to our team at Gerardi Real Estate, and let us guide you through the next steps!