07:13 AM EST, 12/12/2024 (MT Newswires) -- Wednesday's Bank of Canada rate cut of 50bps will help with the debt-servicing burden of households as the country heads into the holiday season and supports increased spending to some degree, said Keith Reading, senior director of research at Morguard, following the reduction.

The rate cut impact on Canadian businesses will be moderately positive, given the ongoing effects of heightened economic uncertainty and the still high cost of machinery and equipment financing, noted Reading.

Lower interest rates will support an uptick in housing market activity to some extent, which will help drive economic growth, he added.

The rate cut won't have a significant impact on commercial real estate investment sales, according to the Morguard director. The interest rate cut will have a positive impact on businesses that are interest-rate sensitive such as housing and other big-ticket spending on cars.