Both the BoC and the Fed cut rates by 0.25% this week.

My assessment :

In Canada, the move reflected a weakening economy: GDP, exports, investment, jobs, wages all softer. Markets expect at least one, possibly two, more cuts this year.

For housing, this may draw some sidelined buyers back into the market, simply because there’s finally a clearer sense of direction.

In the US, the Fed cut more reluctantly,  inflation is still sticky, but job growth is cooling. It was framed as a ‘risk management’ move.  Markets now see a 90% chance of another cut in Oct.

Since Canada cut earlier and more often, this US move narrows the gap. That gives the BoC a bit more flexibility to ease further without pushing the dollar down too hard.

Important reminder: the BoC rate directly impacts variable mortgages. Fixed rates follow bond yields and market expectations, not the overnight rate, so today’s cut doesn’t mean fixed rates automatically fall. So now we watch the sentiment,  here and in the US, and how it plays out in the bond market.

Next BoC: Oct 29, Dec 10

Fed: on the same schedule