Bank of Canada widely expected to cut interest rates today, odds leaning toward half-point cut

The Bank of Canada is set to make its final interest rate announcement of the year this morning.

Forecasters are widely expecting a half-percentage point interest rate cut.

That would bring the Bank of Canada’s key rate down to 3.25 per cent.

The November labour force survey solidified those expectations, as the latest employment figures showed the jobless rate rose to 6.8 per cent.

The central bank lowered its benchmark interest rate by half a percentage point in October in response to inflation returning to its two per cent target.

Governor Tiff Macklem wouldn’t say at the time whether the central bank would follow up with another jumbo cut in December, and instead said the decision would be data-dependent.

This report by The Canadian Press was first published Dec. 11, 2024.

Nojoud Al Mallees, The Canadian Press