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Bank of Canada lowers interest rate to 2.5% in 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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The agency reduced the rate to 2.5%, after keeping it at 2.75 per cent since March
·Buenos Aires, Argentina
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New Hamburg independentReposted by 
OurWindsor.ca
OurWindsor.caBank of Canada drops key interest rate for first time since March
Governor of the Bank of Canada Tiff Macklem cited Canada’s softening labour market and removal of most retaliatory tariffs as reasons for the rate cut.
·New Hamburg, Canada
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Coverage Details
Total News Sources85
Leaning Left27Leaning Right5Center11Last UpdatedBias Distribution63% Left
Bias Distribution
- 63% of the sources lean Left
63% Left
L 63%
C 26%
12%
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