Bank of Canada open to rate cuts, but lower rates a ways off

The Bank of Canada in Ottawa. Photo by Justin Tang/The Canadian Press files

The Bank of Canada on Wednesday reinforced that it’s at least open-minded to future rate cuts, according to its latest meeting minutes. But for variable-rate holders , open doesn’t mean imminent; it means cuts could be several inflation reports and some crossed fingers away.

Meanwhile, United States Federal Reserve rate cut expectations — which also sway Canadian rates — have been running rampant. As this is being written, there’s a better than nine in 10 shot of a Sept. 17 cut, according to LSEG Data & Analytics. But Thursday’s unexpectedly hot U.S. Producer Price Index means significant U.S. easing isn’t written in stone.

That aside, it was a dull week in Canada’s mortgage rate market . We saw just