The Bank of Canada made yet another 25-basis-point cut to its benchmark interest rate, marking its third in a row and bringing the rate to 4.25%. 

This move was largely expected, but still welcome news for Canadians and a reflection of easing inflation.  

Scotiabank’s Chief Economist Jean-François Perrault is back to break down this latest announcement and the impact of the central bank’s cutting cycle so far, and provide his take on the current state of the Canadian economy. 

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: 

1:01 - JF's reaction to the latest central bank decision to cut its key interest rate by 25 basis points 

1:27 - What can we glean from the Bank of Canada's comments? 

2:24 - What JF expects for the Bank of Canada's two decisions in 2024 and 2025 

3:13 - What imnpact has the two previous interest rate cuts had on Canada's housing market? 

5:20 - The U.S. Federal Reserve is expected to start cutting rates this month. How does that factor into the Bank of Canada's decisions and how does it impact the broader economy? 

6:17 - Risks to inflation, and the current state of the Canadian economy 

9:48 - A closer look at GDP data - should we be concerned about weak household and per capita spending? 

11:17 - Will already high unemployment in Canada rise further? 

12:48 - How could trade tensions with China and tariffs on electric vehicles, steel and aluminum impact inflation? 

14:42 - Three key takeaways for Canadians 

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