Big news for the Canadian economy today! The Bank of Canada (BoC) announced it is reducing its target for the overnight rate by 25 basis points (0.25%), bringing the new key rate down to 2.25%.
This move comes as the central bank attempts to provide more support for the Canadian economy, which continues to face weakness, particularly from global trade tensions and uncertainty. The BoC noted that while consumer spending has been robust, exports and business investment have been subdued. By lowering the rate, the Governing Council is aiming to boost economic activity and guide the economy through a period of structural adjustment while keeping inflation on target.
The Bank of Canada’s next scheduled interest rate announcement is on December 10, 2025.
For complete details on the decision and the Monetary Policy Report, you can read the official news release:
Bank of Canada lowers policy rate to 2¼%
