The Bank of Canada announced today that it has reduced its overnight policy rate by 25 basis points to 2.25 per cent, marking another step in its effort to support the economy amid ongoing global trade tensions. The Bank Rate now stands at 2.5 per cent, with the deposit rate at 2.2 per cent. This is the second consecutive rate cut this year, with the Bank citing global trade disruptions, U.S. tariffs impact, and slow global economic growth as reasons behind the decision, while maintaining confidence in Canada’s resilience as it navigates a shifting economic landscape. Bank of Canada Governor, Tiff Macklem, pointed to a rising consumer spending and residential investment as positive indicators; and reaffirmed commitment to supporting price stability, noting that the current rate level is “about right” to keep inflation close to target while helping the economy “through this period of structural adjustment.” Connect with us if you need a recommendation for a great mortgage broker!
