10/29/2025
Business Bank of Canada lowers key interest rate to 2.25%, suggests it's done cutting rates for now.
Officials led by Governor Tiff Macklem lowered the benchmark overnight rate by 25 basis points for a second consecutive meeting on Wednesday, bringing the policy rate to 2.25%, the lowest since July 2022.
The central bank said it made the 25-basis-point cut as weakness ripples through the Canadian economy and with inflation expected to stay close to the bank's two per cent target.
This will likely be the last rate cut of this cycle for the Bank of Canada,” they said, adding that if the economy or the job picture weakens again, policymakers could see their way to another cut to bring rates to two per cent.
