Big news today from the Bank of Canada! They’ve decided to cut their key interest rate by 0.50%, a move that could have some noticeable effects on your wallet. The decision comes as the Bank tries to help the economy along, dealing with slower growth and inflation that’s still a bit too high for comfort.
So, what does this rate cut actually mean for you?
If you have a variable-rate mortgage or other loans tied to interest rates, you could see your payments drop a little bit in the near future. This could be great news for anyone feeling the pinch of high payments right now. On the other hand, if you’re hoping for higher interest on your savings or GICs, you might not get much of a boost—rates on savings are likely to stay low for a while.
In short, the Bank of Canada is doing what it can to keep the economy moving in the right direction, and this rate cut is part of that effort. Want to learn more? Check out the full announcement here.
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