Image
Image
Image
Image
Image
Image

COULD 2024 SEE INTEREST RATES REDUCED?

Posted by: Regina Chamber Admin - January 3, 2024

Business experts believe the Bank of Canada’s interest rate will begin to fall in 2024 but given the number of variables involved, there is caution in their forecasts.

In its final three decisions of 2023, the Bank of Canada (BOC) maintained its interest rate which currently sits at five per cent, which is an increase of 4.75 percentage points since March 2022.

BOC increased the cost of borrowing in an attempt to lower price pressures in the Canadian economy. BOC has targeted an interest rate of two per cent but it could take an extended period to reach that goal.

Tiff Macklem, governor of BOC, said in a year-end speech on Dec. 15 that significant progress has been made in restoring price stability. He add that BOC is considering whether and when it can lower the interest rate but at present, it’s too early to considered cutting the policy rate.

Craig Lord of Global News, after interviewing a number of financial experts, recently wrote a detailed story about what the interest rate could look like in 2024. To read that story, click HERE.

Chamber News & Updates

Image
Image
Image