The BoC just gave the economy another 25-basis-point energy shot. That means Canada's benchmark prime rate will now ease to 4.45%, effective tomorrow. It’ll mark the lowest prime rate since June 2022.
Moreover, if leading variable rates track prime lower, they'll become the easiest qualifying option based on federal stress test rules.
Unfortunately for low-rate lovers, markets predict this will be the last cut for some time. OIS-implied odds for easing at the next (Dec. 10) rate meeting are just 10%, and only 35% for next year.
That comes after Macklem dropped this line this morning:
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