(The Canadian Press)

By The Canadian Press

3.25 per cent

BoC delivers jumbo interest rate cut, signals slower pace of cuts moving forward

Dec 11, 2024 | 10:45 AM

The Bank of Canada lowered its key interest rate by half a percentage point today but signalled a slower pace of rate cuts moving forward.

The decision marked the fifth consecutive reduction since June and brings the central bank’s key rate down to 3.25 per cent.

Forecasters were widely expecting the jumbo interest rate cut after the November labour force survey showed the unemployment rate rose to 6.8 per cent.

Governor Tiff Macklem says in his prepared statement that the central bank opted for two large rate cuts in a row because inflation and economic growth don’t need to be restricted anymore.

With inflation back at the two per cent target, the central bank is now focused on keeping it there.

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However, with interest rates now down substantially, Macklem signalled the central bank will likely take a more gradual approach to monetary policy.

(The Canadian Press)