The Bank of Canada has a significant impact on interest rates, mainly through changes in its policy interest rate*. Most economists do expect the first Bank of Canada rate cut to happen by mid-year. Forecasts from most of the Big 6 banks see the overnight target rate falling back to at least 4.00% by the end of 2024 from its current rate of 5.00%.

*The Target Rate or Key Interest Rate or the Bank of Canada's Policy Interest Rate:

The benchmark cost of borrowing set by the central bank. This is the rate that influences the Prime rate set by lenders for variable loans and lines of credit, including variable-rate mortgages and HELOCs.