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Bank of Canada lowers interest rate to 2.5% in first cut since March
The Bank of Canada cut its policy rate by 25 basis points to 2.5% to support the economy amid weaker growth and inflation risks, marking the first cut since March.
- On September 17, 2025, the Bank of Canada lowered its key interest rate by 25 basis points to 2.5 percent in Ottawa to support the economy.
- The rate cut responded to slower economic growth driven by a 1.5 percent GDP decline and a 27 percent drop in exports amid U.S. tariffs and trade uncertainty.
- August inflation remained steady at 1.9 percent while unemployment rose to 7.1 percent with job losses mainly in trade-sensitive sectors and ongoing wage growth easing.
- Governor Tiff Macklem explained that the decision to reduce the policy rate was unanimous among the council members, aiming to more effectively manage the evolving economic risks, particularly considering the easing of tariffs and reduced inflationary pressures.
- The Bank will closely monitor the effects of trade disruptions and economic risks to maintain price stability and support growth amid ongoing uncertainties.
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cknewstoday.caBank of Canada cuts key rate to 2.5 per cent
The Bank of Canada is lowering its key interest rate amid signs of a slowing global economy.In a long-awaited announcement on Wednesday morning, the Bank reduced the rate from 2.75 per cent to 2.5 per cent.The bank rate is also lowered, from three to 2.75 per cent, and the deposit rate is down from 2.7 to 2.45 per cent.The Bank said it was a case of "something had to give" after Canada's Gross Domestic Product (GDP) fell by 1.5 per cent in the s…
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Total News Sources41
Leaning Left16Leaning Right3Center6Last UpdatedBias Distribution64% Left
Bias Distribution
- 64% of the sources lean Left
64% Left
L 64%
C 24%
12%
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