12/14/2024
On December 11, 2024, we were graced with another 0.50% basis points cut dropping the target overnight rate to 3.25%. This is the fifth consecutive decrease since June of this year.
Why is the overnight interest rate steadily declining?
The inflation rate for September 2024 was 1.6%. The motive behind the declines to the overnight rate in 2024 was to encourage consumer spending, for a target of around 2%, according to The Bank of Canada. In October 2024, they announced hitting the target overnight rate of 2%
What can you expect from the next announcement on January 29, 2025?
A further decline is expected to hold the inflation rate around 2% but it is speculated that we will not see the same dramatic declines we were blessed with during 2024.
Is now the best time to sell? .....
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On December 11, 2024, we were graced with another 0.50% basis points cut dropping the target overnight rate to 3.25%. This is the fifth consecutive decrease since June of this year.