The Bank of Canada slashed its key interest rate by 50 basis points to 3.25% on December 11, 2024, marking its fifth consecutive cut. This aggressive move comes in response to rising unemployment, which hit 6.8% in November, and a weakening economy. The central bank aims to stimulate economic growth and consumer spending while keeping inflation within its 1-3% target range. This decision is expected to benefit variable mortgage holders and could potentially reignite Canada’s housing market.