Overview

• Bank of Canada cut its benchmark interest rate to 4.5%, the second reduction this year.
• Economists now predict additional cuts in September and October, accelerating previous forecasts.
• Governor Tiff Macklem highlights weak economic growth and rising unemployment as key factors.
• Experts note that current rate cuts may have limited immediate impact on the housing market.
• Some forecasts suggest the policy rate could drop to 2.5% by mid-2025.