Quick answer
On June 5, 2024, the Bank of Canada cut its policy (overnight) rate to 4.75%. Inflation (CPI) was running at 2.7% (core 3.1%) and unemployment was 6.4% at the time.
Many economists had expected this a year earlier; instead the Bank had still been hiking then. June 5th marked the genuine turn in the cycle.
The rate path (2021–2024)
The Bank of Canada policy rate over the 2½ years around this decision. It moved to 4.75% here.
Inflation vs the 2% target
Total CPI and the Bank's core measure against its 2% target — the “why” behind the decision. Inflation was 2.7% at the time.
Heads up: this covers the decision on June 5, 2024. Rates move constantly — for the rate and options that apply to you today, book a call.
Frequently asked
Did the Bank of Canada cut interest rates on June 5, 2024?
Yes — on June 5, 2024 the Bank of Canada cut its policy (overnight) rate to 4.75%.
What was the Bank of Canada's policy rate in June 2024?
4.75% — the target for the overnight rate, with inflation (CPI) around 2.7%.
What does a rate cut mean for my mortgage?
If you're in a variable-rate mortgage, a cut lowers your rate (and payment or the interest portion) right away, while a hold leaves it unchanged. If you're on a fixed rate, it matters most at renewal. For what it means for your specific situation, book a call with Josh.