In a move widely expected by economists, the Bank of Canada cut its benchmark interest rate by 25 basis points to 2.5 per cent on Wednesday, amid a “weaker economy and less upside risk to inflation.” “After remaining resilient to sharply higher U.S.
tariffs and ongoing uncertainty, global economic growth is showing signs of slowing,” the central bank said in a statement. Here’s how economists responded to the central bank’s decision, along with their outlook on future rate cuts. A welcome email is on its way. If you don't see it, please check your junk folder.
“The Bank of Canada’s decision to cut by 25 basis points today was of little surprise following the recent softer labour market data and easing of upside inflation risks, although the relatively neutral tone of the central bank’s policy statement suggests that it is not necessarily expecting to cut rates again in October,” Stephen Brown, deputy chief North America economist at Capital Economics Ltd., said in a note.
Published: September 17, 2025 6:04 pm
Source: Financial Post — Read original