Bank of Canada cuts key interest rate to 4.75%
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PRINCE GEORGE — The Bank of Canada has cut its key interest rate a quarter point to 4.75%, the first time the bank has cut the rate in more than four years.
The first rate cut since March 2020 comes as good news for would-be first time homebuyers and people with variable rate mortgages. Governor of the Bank of Canada Tiff Macklem says the central bank has more confidence inflation is moving closer to its 2% target and that if inflation continues to slow, it is reasonable to expect further rate cuts, but he says those decisions will be taken one meeting at a time.
Canadian banks are lowering their prime rates after the Bank of Canada cut its benchmark rate for the first time in four years. Banks including RBC, TD, BMO, CIBC and Scotiabank have lowered their rates to 6.95% from 7.2%, effective June 6th.
