If you’ve felt nerves of anticipation before The Bank of Canada interest rate announcements this year, you’re not alone. Canadian homeowners and hopeful buyers breathed a sigh of relief when interest rates began to drop this year. So, what can we expect with the second-last rate announcement at the end of this month?
When is the next Bank of Canada interest rate announcement?
The Bank of Canada is poised to make their next announcement on October 23rd.
Will interest rates drop again?
Let’s take a look back at the year: The Bank of Canada held interest rates at 5% during their announcements in January, March, and April, citing unsteady inflation rates, but dropped rates by 25 basis points each time in June, July and September.
With the rate at 4.25%, experts believe this month will see another 25-point drop—if not more. Some experts say it could be possible to see a 50-point drop.
How much will interest rates drop by the end of the year?
Some of the Big Five Banks have predicted major decreases. CIBC predicts the rate will be 3.50% by the end of the year. This would require a 50-point cut at the next announcements. Other major banks, including TD Bank and Scotiabank, laid out more conservative predictions of a 3.75% rate by the end of this year. Regardless, interest rates continue to trend downwards into 2025, meaning the housing market is primed to pick up as mortgage rates adjust.
When is the final announcement for 2024?
The final interest rate announcement will take place on December 11th, and the first one in 2025 will be on January 29th.
Is moving top-of-mind for you as interest rates come down? Contact our team to get started today!
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