On October 23rd the BoC did what many economists were expecting, it cut the Key Rate for the fourth time in a row – this time by a larger-than-usual amount of 50 basis points. The last time our Central Bank cut by such a significant amount was in March 2020, at the start of the pandemic.

This cut is great news for Variable Rate Mortgage holders, Homeowners renewing a mortgage, Home Sellers, and especially Home Buyers.

The October 15th, StatsCan report, that Canada's annual inflation in September cooled to 1.6%, down from 2% in August and a significant drop from July's 2.5% reading, was likely a deciding factor in the BoC’s decision. It’s the first time since 2021 that Total CPI Inflation has been below the Bank’s 2% target.

Based on current projections, we’re likely to see another rate trim in December and continued cuts in the new year. In the meantime, this latest Bank of Canada decision will have an impact on consumer thinking, activity, and housing markets across the country.