On January 29, 2025, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to three per cent.
The Bank Rate is now 3.25 per cent, while the deposit rate is 2.95 per cent.
“In Canada, past cuts to interest rates have started to boost the economy,” the country’s central bank said in a news release.
“The recent strengthening in both consumption and housing activity is expected to continue. However, business investment remains weak. The outlook for exports is being supported by new export capacity for oil and gas.”
The BoC added that it’s ending quantitative tightening — gradually restarting asset purchases in early March.
This decision marks the BoC’s sixth consecutive rate reduction. The country’s central bank lowered its key interest rate by 50 basis points to 3.25 per cent on December 11, 2024.
For a complete list of interest rate changes and detailed insights, visit our full rate change list.
The next interest rate announcement from the Bank of Canada is scheduled for March 12, 2025.
The central bank’s latest interest rate cut is expected to help stimulate business activity and consumer spending, which could lead to increased hiring.
However, the overall impact on employment will depend on how quickly the broader economy responds to lower interest rates, inflation, and U.S. President Donald Trump’s 25 per cent tariff on all Canadian...
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