On December 11th the BoC announced its fifth straight interest rate cut, reducing its policy interest rate by 50 bps to 3.25%. This fifth straight interest rate reduction is positive news for current and prospective Canadian homebuyers, and complements the new mortgage rules that will take effect this month. Bank of Canada governor Tiff Macklem said during a news conference that the bank’s governing council felt its monetary policy no longer needed to be as restrictive, with inflation hovering around its two per cent target since the summer. He added that several policy measures, including the federal government’s decision to lower immigration targets, will impact the outlook on economic growth and inflation going forward.
