The Bank of Canada has announced yet another interest rate cut and this time, it’s a big one: a 50-basis-point reduction that brings the policy interest rate to 3.75%. As always, here to tell us what this latest announcement means for Canadians is Scotiabank’s Chief Economist Jean-François Perrault.  

For an up-to-date breakdown of the Bank of Canada’s key interest rate and its change over time alongside inflation numbers, visit our interest rate page. 

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures 

Key moments this episode: 

00:59 - JF’s initial thoughts of the Bank of Canada announcement. 

2:03 - How unusual is a 50-basis-point cut for the central bank? 

2:55 - Why did the Bank of Canada push forward with a large cut? 

4:20 - JF weighs in on whether this was the right move. 

6:00 - How will Canadians feel the impact of this interest rate cut? 

7:54 - How will businesses feel the impact? 

8:44 - How long does it take for these cuts to have a tangible impact? 

9:37 - What are the risks that could drive inflation back up?  

11:43 - What’s the impact of inflation becoming too low? 

12:33 - What does JF expect from the Bank of Canada’s next decision in December? 

13:50 - What is the current outlook for the economy in 2025? 

15:44 - What are the key takeaways for Canadians from this announcement?