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The Bank of Canada has dropped its policy rate to 4.25%, cutting it by 25 basis points this morning.
This marks the third consecutive rate reduction by the central bank this year, aligning with market expectations.
In its statement, the Bank said it made the decision after seeing "continued easing in broad inflationary pressures."
As a result of the decision, prime rate, which affects variable-rate mortgages and other loans, is expected to decrease to 6.45% at most major lenders soon. TD Bank, which typically has a slightly higher mortgage prime rate, should see a reduction to 6.60%.
Click here to read the Bank of Canada's full statement.
The Bank's next rate decision is scheduled for October 23, 2024.
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