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On Monday, November 3, 2025, Tiff Macklem, Governor of the Bank of Canada, will participate in a fireside chat at The Logic Summit.

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%.

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%.

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.

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%.

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.

Governor Tiff Macklem discusses the Monetary Policy Report and the key issues involved in the Governing Council’s deliberations about the monetary policy decision.

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.