Bank of Canada Cuts Interest Rate by 50 Basis Points Amid Economic Uncertainty

The central bank's decision marks the largest rate cut since the 2009 financial crisis, aiming to stimulate growth as inflation stabilizes.

Today's rate cut brings the Bank of Canada's policy rate down to 3.75%, following four consecutive reductions since June.
The move is driven by inflation returning to the 2% target, with the latest reading at 1.6%, allowing the bank to focus on economic growth.
Economists are divided on whether another 50 basis point cut will occur in December, with market odds favoring a smaller 25 basis point reduction.
The Canadian dollar has weakened slightly against the US dollar, reflecting concerns over potential future rate cuts and economic performance.
Upcoming changes in mortgage rules and interest rate cuts are expected to impact the housing market, potentially boosting sales and prices in 2025.