Bank of Canada’s Decision

On Sept. 17, 2025, the Bank of Canada (BoC) lowered its key interest rate to 2.5%.

The Bank Rate dropped from 3% to 2.75%, while the deposit rate is now 2.45%.

“With a weaker economy and less upside risk to inflation, governing council judged that a reduction in the policy rate was appropriate to better balance the risks,” the central bank said in a news release.

“Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity. Governing council is proceeding carefully, with particular attention to the risks and uncertainties.”

Cut After 3 Consecutive Holds

The BoC’s decision comes after the bank kept its key interest rate at 2.75% since March 12, 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 Oct. 29, 2025.

Key Announcement Highlights

• Unemployment rose to 7.1% in August — with job losses largely concentrated to trade-sensitive sectors as US duties continue to affect Canadian businesses. Wage growth continued to ease in the second quarter.
• As expected, Canada’s gross domestic product (GDP) declined by about 1.5% in the second quarter with trade uncertainty weighing heavily on economic activity.
• Business investment dropped in the second quarter as did exports — falling 27%.
• CPI inflation was 1.9% in August. The federal...

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