Quick answer
On December 11, 2024, the Bank of Canada cut its policy (overnight) rate to 3.25%. Inflation (CPI) was running at 1.8% (core 2.4%) and unemployment was 6.7% at the time.
Two half-point cuts in a row was a clear message. Josh explained what the faster easing meant heading into 2025.
The rate path (2022–2025)
The Bank of Canada policy rate over the 2½ years around this decision. It moved to 3.25% 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 1.8% at the time.
Heads up: this covers the decision on December 11, 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 December 11, 2024?
Yes — on December 11, 2024 the Bank of Canada cut its policy (overnight) rate to 3.25%.
What was the Bank of Canada's policy rate in December 2024?
3.25% — the target for the overnight rate, with inflation (CPI) around 1.8%.
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.