Your browser is not supported. We do our best to optimize our websites to the most current web browsers. Please try another browser.
Skip to main content

Bank of Canada Cuts Key Interest Rate to 4.75%

bank of canada cuts rate
Getty Images

The Bank of Canada lowered its key interest rate by 0.25 percentage points to 4.75 per cent on Wednesday, the central bank’s first rate cut since March 2022. The rate impacts loan and mortgage rates in Canada, and homeowners with variable-rate mortgages will see their interest rates drop by 25 basis points immediately.


Related: A Complete Guide to Navigating Interest Rates in Canada for 2024

Bank of Canada governor Tiff Macklem said the bank’s “monetary policy no longer needs to be as restrictive,” adding that we’ve come a long way in the fight against inflation.

Bank of Canada governor Tiff Macklem
Getty Images

Economists anticipated the move as the inflation rate has eased over the last few months.

Speaking to Global News, James Laird, co-CEO of, says this is good news for homeowners who kept their variable rate mortgages, despite facing rising monthly payments due to the previous rate hikes.

“For those who stuck with it, they were waiting for this day,” he said.

Related: When Will Mortgage Rates Drop in Canada? An Expert Weighs In

home with Canadian flag
Getty Images

According to Ratehub, homeowners with a 5.95 per cent mortgage on a $700,000 home with $650,000 outstanding could see their mortgage payments drop by almost $100 monthly.

Most of Canada’s major banks have already cut their prime lending rates to reflect the change.

Looking for more on Canada’s real estate market? Check out HGTV Canada’s Real Estate section for the latest housing news and trends.

Latest News

Elevate your caffeine routine with the perfect at-home coffee bar, thanks to this comprehensive guide.
June 20, 2024
You don’t have to splash out on monogrammed beach towels or furniture sets moulded from gold.
June 19, 2024
If you've got any of these home decor items in your home, it's time to consider donating them... pronto.
June 17, 2024
Thinking about taking the investment property plunge? Here's what you need to know, from maintenance to capital gains.
June 17, 2024
Celebrate Pride in full colour with this vibrant DIY candle holder, made mostly of upcycled materials.
June 14, 2024
Jennifer Lopez and Ben Affleck are selling their luxurious Beverly Hills estate for an estimated $65 million.
June 13, 2024
Make laundry day more enjoyable (and efficient) with these small laundry room ideas.
June 13, 2024
Add these non-toxic cleaning products to your Amazon cart for a healthier home.
June 12, 2024
Ready for a 1970s time warp? Graphic prints and tones of brown, orange and green are a playful nod to 1970s design.
June 11, 2024
This content is restricted to adults of legal age.
Please enter your birthdate to confirm.
Date of Birth