Ottawa- The Bank of Canada today reduced its target for the overnight rate to 4.75% with the Bank Rate at 5% and the deposit rate at 4.75% . The Bank is continuing its policy of balance sheet normalization.
The global economy grew by about 3% in the first quarter of 2024, broadly in line with the Bank’s April Monetary Policy Report (MPR) projection.
“Governing Council is closely watching the evolution of core inflation and remains particularly focused on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.” The Central Bank says in a press release .
This move brings some relief to the nearly half of Canadian mortgage holders set to renew by the end of 2025.The next scheduled date for announcing the overnight rate target is July 24, 2024.