Bank of Canada delivers third straight interest rate cut

The Bank of Canada has cut interest rates by 0.25 percent today, giving a big relief to Canadians. With this, six major banks, including the Royal Bank of Canada, are expected to immediately reduce their prime lending rates, which will bring immediate relief to homeowners with variable mortgages.

This is the third consecutive reduction by the Central Bank. Its prime policy rate has now increased to 4.25 percent. Let us tell you that before the first rate cut in June, the interest rate of the Central Bank was at the highest level of 22 years at the rate of 5 percent for seven consecutive months.

Now with three cuts, it has reduced by 75 basis points. Governor Tiff McClam said if the economy continues to improve, Canadians can expect more cuts by the end of this year.

Meanwhile, market investors are predicting that the Bank of Canada may cut 6 rates by July 2025, which will bring its benchmark interest rate to 3 percent.