Bank of Canada Lowers Overnight Rate to 2.75% Amid Economic Uncertainty
The Bank of Canada announced today that it has reduced its target for the overnight rate to 2.75%, with the Bank Rate set at 3% and the deposit rate at 2.70%.
While the Canadian economy entered 2025 on solid footing, with inflation near the 2% target and strong GDP growth, rising trade tensions and U.S. tariffs are expected to slow economic activity and increase inflationary pressures. The Bank emphasized that the economic outlook remains uncertain due to the rapidly changing policy environment.
This rate cut reflects the Bank’s efforts to support the economy and address potential challenges ahead. – Read more..