In a widely anticipated move, the Bank of Canada announced a 0.25% cut to its key interest rate today, bringing it to 2.25% as part of its ongoing efforts to stimulate economic growth amid slowing inflation pressures.

The decision, revealed on October 29, 2025, reflects the central bank’s cautious approach to balancing economic recovery with price stability, as recent data showed inflation easing closer to the 2% target. Governor Tiff Macklem emphasized the need to support household spending and business investment while signaling that further cuts could depend on incoming economic indicators.

Markets responded with muted optimism, with analysts expecting modest boosts to consumer confidence and borrowing, though concerns remain about persistent global uncertainties impacting Canada’s export-driven economy.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

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