Bank of Canada delivers third straight interest rate cut, bringing policy rate down to 4.25 per cent

The Bank of Canada has cut its benchmark interest rate for the third consecutive time, reducing it by 25 basis points to 4.25%. Analysts anticipate further cuts, with a 93% chance of another reduction in October. Governor Tiff Macklem noted the need to balance inflation risks, as the economy shows signs of weakness. Despite the rate cuts, the housing market remains sluggish, with sales down 17.1% in August. Experts suggest that more significant cuts may be necessary to stimulate economic growth and address housing affordability challenges.