{"id":1867,"date":"2024-09-12T09:37:00","date_gmt":"2024-09-12T13:37:00","guid":{"rendered":"https:\/\/lucynefarand.com\/?p=1867"},"modified":"2024-09-12T09:37:00","modified_gmt":"2024-09-12T13:37:00","slug":"le-taux-directeur-de-la-banque-du-canada-tombe-a-425-apres-une-troisieme-baisse-consecutive","status":"publish","type":"post","link":"https:\/\/lucynefarand.com\/en\/non-classe\/le-taux-directeur-de-la-banque-du-canada-tombe-a-425-apres-une-troisieme-baisse-consecutive\/","title":{"rendered":"Overnight lending rate falls to 4.25% as Bank of Canada makes third consecutive cut"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>Canada\u2019s central bank has made a third cut to its overnight lending rate this year, lowering borrowing costs for existing and aspiring homebuyers yet again.<\/p>\n<p>In its scheduled September 2024 announcement, the Bank of Canada dropped the target for the overnight lending rate by 25 basis points to 4.25%.<\/p>\n<p>In July, Canada\u2019s Consumer Price Index rose 2.5% year-over-year, increasing at the slowest pace since March 2021. Continued easing of inflationary pressures were a contributing factor of the Bank\u2019s decision to lower interest rates by another 25 basis points.<\/p>\n<p>\u201cOur decision reflects two main considerations. First, headline and core inflation have continued to ease as expected. Second, as inflation gets closer to target, we want to see economic growth pick up to absorb the slack in the economy so inflation returns sustainably to the 2% target. Inflation continues to reflect the push and pull of opposing forces. Overall weakness in the economy continues to pull inflation down. But price pressures in shelter and some other services are holding inflation up,\u201d said Tiff Macklem, Governor of the Bank of Canada, in a press conference with reporters following the announcement.<\/p>\n<p>\u201cIf inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further cuts in our policy rate. We will continue to assess the opposing forces on inflation, and take our monetary policy decisions one at a time,\u201d he continued.<\/p>\n<p><center><\/p>\n<div><iframe src=\"https:\/\/www.canva.com\/design\/DAF_VGS3W3Y\/EoSxKp1t6a1Sfsq9j-4_8A\/view?embed\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p><\/center>&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Three cuts down \u2013 more to go?<\/h2>\n<p>The third cut to the overnight lending rate comes at the start of the fall housing market, traditionally a time when buying and selling activity picks up across Canada. For those who have been sitting on the sidelines waiting for cheaper borrowing costs, another decrease to the overnight lending rate may be the extra sign of encouragement they\u2019ve been waiting for.<\/p>\n<p>According to a\u00a0<a href=\"https:\/\/blog.royallepage.ca\/half-of-sidelined-homebuyers-waiting-for-interest-rate-cuts-to-resume-their-purchase-plans\/\" target=\"_blank\" rel=\"noreferrer noopener\">recent Royal LePage survey<\/a>, conducted by Leger,<sup>1<\/sup>\u00a051% of Canadians who put their home buying plans on hold the last two years said they would return to the market when the Bank of Canada reduced its key lending rate. Eighteen percent said they would wait for a cut of 50 to 100 basis points, and 23% said they\u2019d need to see a cut of more than 100 basis points before considering resuming their search.<\/p>\n<p>For today\u2019s first-time homebuyers who face many financial obstacles on their path to home ownership, lower interest rates mean lower monthly mortgage payments and improved affordability. Another\u00a0<a href=\"https:\/\/blog.royallepage.ca\/gen-zs-and-young-millennials-still-believe-in-home-ownership-and-theyre-willing-to-make-sacrifices-to-achieve-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">Royal LePage survey<\/a>, conducted by Hill &amp; Knowlton,<sup>2\u00a0<\/sup>revealed that three quarters (74%) of those in the next generation of homebuyers \u2013 Canadians belonging to the adult generation Z and young millennial cohort, born between 1986 and 2006 \u2013 say that owning a home is a priority for them and a milestone they hope to achieve in their lifetime. Buoyed by the prospect of lower borrowing costs, nearly one in five respondents (18%) who are planning to purchase a home say that their timeline to buy is within the next three years, and another 13% plan to buy in three to five years.<\/p>\n<p>\u201cThe Bank of Canada continues its delicate balancing act, gradually easing the economic drag of high interest rates as the economy cools. With inflation now at its lowest point in three years, policy-makers are shifting their focus to jobs and housing,\u201d said Phil Soper, president and CEO of Royal LePage. \u201cFor first-time homebuyers, the key question is whether to buy now or wait. Home values have largely plateaued this year, and improved affordability due to lower borrowing costs has benefited many. However, once the backlog of sidelined buyers is released into the market, pent-up demand will drive prices higher. This fall, we can expect more cautious Canadians to take the plunge, while those willing to take on the risk might hold out for further rate cuts.\u201d<\/p>\n<p>The Bank of Canada will make its next announcement on Wednesday, October 23rd.<\/p>\n<p>Source:<\/p>\n<h3>Michelle McNally<\/h3>\n<p>Communications manager, Royal LePage<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>&nbsp; Canada\u2019s central bank has made a third cut to its overnight lending rate this year, lowering borrowing costs for existing and aspiring homebuyers yet again. In its scheduled September 2024 announcement, the Bank of Canada dropped the target for the overnight lending rate by 25 basis points to 4.25%. In July, Canada\u2019s Consumer Price [&hellip;]<\/p>\n","protected":false},"author":724,"featured_media":1868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1867","post","type-post","status-publish","format-standard","hentry","category-non-classe"],"acf":[],"_links":{"self":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/users\/724"}],"replies":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/comments?post=1867"}],"version-history":[{"count":1,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1867\/revisions"}],"predecessor-version":[{"id":1869,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1867\/revisions\/1869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/media\/1868"}],"wp:attachment":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/media?parent=1867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/categories?post=1867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/tags?post=1867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}