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The Bank of Canada has lowered its key interest rate to 4.75 per cent, marking the bank’s first rate cut since March 2020. Bank governor Tiff Macklem said in opening remarks that the bank’s monetary policy no longer needs to be as restrictive. “We’ve come a long way in the fight against inflation. And our confidence that inflation will continue to move closer to the two per cent target has increased over recent months,” Macklem said.

But Macklem stressed that the Bank of Canada is going to take things “one meeting at a time.” Canadians can reasonably expect more cuts so long as inflation continues to ease, and the bank maintains its confidence that inflation is steadily approaching the bank’s two per cent goal, Macklem said. “We don’t want monetary policy to be more restrictive than it needs to be to get inflation back to target. But if we lower our policy interest rate too quickly, we could jeopardize the progress we’ve made,” he said.

Our local real estate market continued to hold its own in May with 209 homes sold. That’s amounts to an 8% decrease year over year. The average days on market increased slightly to 24 and the average sale price for Guelph was $856,000. Going into June, there are 399 active listings which is approximately 2 months worth of inventory. It will be interesting to see how the market responds to the interest rate cut while transitioning from the spring to summer selling seasons.