Summary
The Bank of Canada has reduced its key interest rate to the lowest level in three years, aiming to boost the housing market, which has experienced slow sales. This move is expected to help increase home sales and prices, which have been struggling due to economic uncertainties and tariff impacts.
Key Facts
- The Bank of Canada cut its key interest rate by 0.25 percent on September 17.
- This rate cut is the lowest in three years and matches a similar move by the U.S. Federal Reserve.
- The change aims to make mortgages more affordable and encourage home buying.
- Canada's real estate sector is a significant part of the economy, contributing 13 percent to the GDP.
- Concerns over tariffs and economic uncertainties had slowed the housing market.
- National home sales rose slightly over 1 percent last month, marking five months of small increases.
- The central bank hopes the rate cut will help the economy while keeping inflation under control.
