739 Get This Rate Bank of Canada Rate Forecast for 2024 075 Decrease in the Overnight Rate

Experts Predict a 0.75% Decrease in the Bank of Canada's Overnight Rate

The Bank of Canada (BoC) has announced a 0.75% decrease in its overnight rate, bringing it to 4.25%. This marks the first decrease in the overnight rate since 2020. The decision comes after a series of interest rate hikes in 2023 to combat rising inflation.

What to Expect in the Future

Experts are predicting that the BoC will continue to lower interest rates in 2024. The Big Six banks in Canada forecast an average overnight rate of 3.5% by the end of 2024. This decrease in interest rates is expected to revitalize Canada's housing market, as lower mortgage rates make it more affordable for Canadians to purchase homes.

Conclusion

The BoC's decision to decrease the overnight rate is a positive sign for the Canadian economy. Lower interest rates will stimulate economic growth and make it easier for Canadians to afford housing. However, it is important to note that the BoC has warned that the rate cut conversation is premature, and that future interest rate decisions will be data-dependent.