Bank of Canada Interest Rate Cut and Newcomers [Video]

The good news for newcomers and international students is that the Bank of Canada’s interest rates are falling. Experts predict they will continue to fall throughout 2024. The cuts will lift some of the financial pressures affecting all Canadians – including newcomers – from increasing mortgage costs, borrowing costs, and the rising cost of many consumer items.

On July 24, the Bank of Canada cut its benchmark interest rate by 0.25 percent to 4.5 percent. The second 0.25 percent cut followed a similar one in June. Before June 5, the rate stood at 5 percent, down from a high of 8.1 percent in June 2022.

The most recent Bank of Canada interest rate cut came as inflation in Canada fell from 2.9 percent to 2.7. The Bank’s target rate for inflation is 2 percent.

Meanwhile, unemployment in Canada increased to 6.4 percent in June, up from 6.2 percent in May.

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