The Bank of Canada has cut its benchmark interest rate by 25 basis points, marking the second cut in as many months, to 4.5%. Scotiabank’s Chief Economist Jean-François Perrault returns once again to break down the decision and its implications. 

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. 

Key moments this episode: 

1:00 – Why Canadians should “take a lot of comfort” from the latest announcement  

1:42 – What might have given the Bank of Canada assurance to make a cut 

3:13 – Will we see back-to-back cuts in the next two meetings as well? 

4:21 – What are the biggest risks that could keep inflation from coming down? 

6:20 – The state of the housing market – a large factor when it comes to inflation in Canada 

8:06 – What about risk around a potential recession? Are we out of the woods? 

9:37 – What is the impact of the U.S. and Canadian central banks diverging? 

11:30 – The 3 key takeaways for Canadians from this announcement