Bank of Canada Interest Rate Announcement – October 29, 2025
Posted by Adam Chahl on
The Bank of Canada lowered its overnight policy rate by 25 basis points this morning from 2.5% to 2.25%. In the statement accompanying the decision, the Bank noted that GDP growth is expected to be weak over the second half of 2025 but will get some support from rising consumer and government spending as well as residential investment. However, the labour market remains soft with unemployment at 7.1%. The Bank expects the Canadian economy to expand by 1.2% this year, followed by similarly weak growth of 1.1% in 2026 before picking up slightly to 1.7% in 2027. On inflation, the Bank sees underlying inflation steady at around 2.5% and expects inflationary pressures to ease in the months ahead. Finally, the Bank provides some forward-looking guidance on…
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