Bank of Canada Rate Cut Gives Borrowers Hope, But Not Quick Relief, Analysts Say

Homeowners won’t see mortgage costs fall much as a result of the June 6 interest rate cut by the Bank of Canada but, with the next central bank rate decision scheduled for July, borrowers may not have to wait long for some relief, say economists and analysts. The central bank announced on June 5 it would lower its key interest rate by a quarter of a percentage point—the smallest decrease normally considered—to 4.75 percent from 5 percent, raising hopes among homeowners, small businesses, and other borrowers that interest rates are coming down. The rate change was the first since July of 2023, when the central bank raised the rate to 5 percent, the last of a series of increases that pushed the rate up from historic lows....