As of January 18, 2025, leading banks and economists anticipate that the Bank of Canada will reduce its key interest rate by 25 basis points to 3.00% during its upcoming announcement on January 29, 2025. This follows a series of rate cuts totaling 1.75 percentage points since June 2024.
The decision to lower the interest rate is influenced by several factors:
Economic Uncertainty: Concerns about potential U.S. tariffs under the new U.S. administration have increased economic uncertainty, prompting the Bank of Canada to adopt a more cautious approach.
Inflation Trends: Inflation has remained within the Bank's target range, allowing for a more accommodative monetary policy.
Employment Data: Despite a robust job report in December 2024, which saw the economy add 90,900 jobs and the unemployment rate edge down to 6.7%, some economists believe that further rate cuts may be necessary to fully utilize economic capacity.
Looking ahead, economists project that the Bank of Canada's policy interest rate could decrease to 2.75% by the end of 2025, with incremental cuts of 0.25% expected at each meeting.
It's important to note that these projections are subject to change based on evolving economic conditions and the Bank of Canada's ongoing assessment of the economy.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.