This morning, the Bank of Canada lowered its key interest rate by 0.50%, bringing the prime rate down to 5.95% from 6.45%. For those with a variable-rate mortgage, this means a savings of about $30.68 per month for every $100,000 of mortgage. 💰
🔎 What’s happening globally?
• The global economy is expected to grow at about 3% over the next two years.
• In the U.S., consumer spending is driving stronger-than-expected growth.
• On the flip side, China’s outlook remains weak, which could impact global trade and investments.
📊 Closer to home in Canada:
• GDP growth is slowing down, with an expected rate of 1.75% for the second half of the year.
• Unemployment is on the rise, reaching 6.5% in September.
• Inflation has cooled, dropping from 2.7% in June to 1.6% in September, thanks to lower oil and gas prices.
💡 The Bank of Canada’s goal is to keep inflation steady around 2%. Their next update is on December 11, 2024.
Have questions about how this impacts you? Let’s chat! Reach out anytime. 😊 #InterestRates #MortgageSavings #CanadaEconomy #InflationUpdate #RealEstate