'Buyer's market': What the interest rate cut could mean for Calgary homeowners

For the second time in two months, the Bank of Canada cut its key interest rate.

The move to decrease by 25 basis points, down to 4.5 per cent, is welcome news for those with debt or looking to enter into the housing market, some experts say.

"What this means for people is that if you're looking to go buy a home, it's a buyer's market right now," Leah Zlatkin, LowestRates.ca and licensed mortgage broker, told CTV Calgary.

"So if you're going to qualify it a little bit less, or if you're looking to qualify on a fixed rate mortgage, the rates are a little bit lower than they were this time last year."

Wednesday's move by the BoC follows a similar rate cut in June.

"We are increasingly confident that the ingredients are now in place to bring inflation back to the 2 per cent target," said Tiff Macklem, the Bank of Canada governor.

That confidence could lead to another rate cut before the end of the year, some economists say.

"I think there is a chance they don't pause and they keep cutting into 2025," said Claire Fan, an economist at the Royal Bank of Canada.

The lower interest rate is also being applauded by the Calgary Chamber of Commerce.

"It's good for consumer spending. People feel a little bit more comfortable. And it's obviously very good for businesses as well, because then they have a little bit more money to play with -- their debt servicing costs go down and that's really important. They can reinvest in their businesses," said Deborah Yedlin, the president and CEO of the Chamber.

The central bank's next interest rate decision will be in September.