The interest rate has been lowered by the Bank of Canada by 25 points, bringing it down to 3 percent. This marks the sixth consecutive cut made by the central bank.
It is generally seen as good news for consumers when interest rates are cut,” said Trevor Lewington, CEO of Economic Development Lethbridge. “It usually means financing is more accessible through loans, and there may be some relief on credit card interest rates.
However, while this could benefit some, there are concerns about what comes next.
U.S. President Donald Trump has threatened to impose tariffs on Canada as high as 25 percent starting February 1. The Bank of Canada has acknowledged that the current economic outlook is uncertain.
The risk of a trade conflict triggered by new U.S. tariffs on Canadian exports is a major uncertainty,” said Bank of Canada governor Tiff Macklem. “This could disrupt the Canadian economy significantly and is clouding the economic outlook.”
Should a trade war occur, it’s believed that the Bank of Canada would have limited power to prevent a recession.
Business leaders in the area are preparing for the possibility of economic challenges.
“The central bank will do its part, but other levels of government will also need to stay vigilant and adjust policies as needed to help mitigate the impact,” Lewington stated.
Despite the uncertainties, the reduced interest rate makes it a more favorable time for potential homebuyers to enter the market.
After years of high rates due to the pandemic, the ongoing rate cuts are making homebuying a more appealing option.
“There’s a good chance we’ll see more people starting to look at purchasing now,” said James Rea, chair of the Lethbridge and District Association of Realtors.
The next decision regarding interest rates will be made by the Bank of Canada on March 12.
also check the Q3 results 29 date 2025
