The Bank of Canada meeting minutes for the October 2024 meeting. The BOC cut rates by 50 basis points at the October 23 meeting:
- Ahead of Bank of Canada's October 23 rate announcement, governing council felt upside pressures on inflation will continue to decline, so policy did not need to be as restrictive.
- Governing council members considered the merits of cutting the policy rate by 25 basis points. There was strong consensus for taking a larger step.
- Members wanted to convey that a larger step was appropriate given the economic data seen since July.
- Members discussed how slowing rate of population growth would act as a brake on total consumption growth.
- Members noted it would take time for lower interest rates to have a big enough impact on per capita spending to overcome the drag on total consumption growth due to lower population growth.
- Some members noted that with a soft outlook for demand, domestically oriented companies were reporting modest investment plans.
- Governing council felt that if growth did not rise above potential growth, excess supply could persist in pulling inflation lower.
- Members discussed the risk that lower interest rates, pent-up demand, and new rules for mortgage qualification could increase demand for housing and boost housing prices more than expected.
- Members saw the prospect for stronger energy exports persisting through next year.
- Members noted that geopolitical risks and risk of impacts from new shocks were more prominent than normal to the bank's outlook.
- Governing council agreed to continue its policy of normalizing the balance sheet by allowing maturing bonds to roll off.
