Bank of Canada’s Decision

On Oct. 29, 2025, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to 2.25%.

The Bank Rate dropped from 2.75% to 2.5%, while the deposit rate is now 2.2%.

“With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in [the latest] Monetary Policy Report,” the central bank said in a news release.

“If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond.”

Second Consecutive Cut

The BoC’s decision comes after the bank lowered its key interest rate to 2.5% on Sept. 17, 2025.

For a complete list of interest rate changes and detailed insights, visit our full rate change list.

Next Rate Announcement

The next interest rate announcement from the Bank of Canada is scheduled for Dec. 10, 2025.

Key Announcement Highlights

• Canada’s economy contracted by 1.6% in the second quarter — reflecting a drop in exports and weak business investment amid heightened trade uncertainty. While the global economy has been resilient to the historic rise in US duties, the impact is becoming more evident.
• The unemployment rate remained at 7.1% in September and wage...

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