October 29, 2025
Bank of Canada lowers policy rate to 2¼%
The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.
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October 29, 2025
Monetary Policy Report—October 2025
Canada’s economy is adjusting to tariffs and the sharp drop in demand for exports. The reconfiguration of global trade and domestic production is leading to higher costs. Total inflation has been around 2%, while underlying inflation remains about 2½%. -
October 29, 2025
Monetary Policy Report—October 2025—In focus—Shifts in Cost Pressures
Cost pressures are expected to ease. But businesses continue to face high input costs due to US tariffs and the broader reconfiguration of global trade. -
October 29, 2025
Monetary Policy Report—October 2025—Overview
The Canadian economy is adjusting to steep US tariffs on several industries and coping with elevated uncertainty. Tariffs have led to a fall in the demand for Canadian goods, affecting the broader economy. The reconfiguration of global trade and domestic production is also leading to higher costs. Total inflation has been around 2%, while underlying inflation has continued to be about 2½%. -
October 29, 2025
Monetary Policy Report—October 2025—Risks
Risks related to Canada’s trade relationship with the United States remain elevated. The outlook could also be affected by risks that are not directly related to tariffs. -
October 29, 2025
Monetary Policy Report Press Conference Opening Statement
Governor Tiff Macklem discusses the Monetary Policy Report and the key issues involved in the Governing Council’s deliberations about the monetary policy decision. -
October 29, 2025
Monetary Policy Report—October 2025—In focus—Assessing underlying inflation
The goal of monetary policy is to keep total inflation close to the 2% target. But inflation can be volatile, and it takes time for changes to interest rates to filter through the economy. This is why, when setting policy, it is important to distinguish between temporary movements in inflation and lasting ones. -
October 29, 2025
Monetary Policy Report—October 2025—Global economy
Global growth has been resilient. But the historic rise in US tariffs is reshaping global trade, weighing on prospects for global growth and pushing up inflation in the United States. -
October 29, 2025
Monetary Policy Report—October 2025—Canadian economy—Outlook
The ongoing trade conflict is fundamentally reshaping Canada’s economy and will have a lasting negative impact on economic activity. At the same time, the reconfiguration of global trade and domestic production is putting upward pressure on costs. Reflecting these two competing forces, inflation remains near the 2% target over the projection horizon. -
October 29, 2025
Monetary Policy Report—October 2025—Projections
Economic growth in Canada is projected to strengthen from around 0.75% in the second half of 2025, with annual growth averaging 1.4% over 2026 and 2027. Inflation is expected to remain around 2% over the projection horizon.