Today the Bank of Canada announced a 25-basis-point cut to its key policy interest rate, lowering it from 2.75% to 2.50% - the first reduction since March. The move comes amid signs of a weakening economy, including a 1.6% GDP contraction in Q2 and more than 100,000 job losses in July and August, which pushed the unemployment rate to 7.1%, a nine-year high.

Although inflation edged up to 1.9% in August, it remains within the Bank’s 1% - 3% target range. The rate cut, widely anticipated by economists, is intended to stimulate consumer spending and business investment, though uncertainty surrounding U.S. tariffs continues to weigh on the outlook.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

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