The Bank of Canada delivered another cut to interest rates by 25 basis points Wednesday, which lowers its overnight rate to 2.25 per cent.
Commercial banks set their lending rates to customers based on the Bank of Canada’s benchmark.
This means Canadians with variable rate loans like a mortgage will likely see their costs come down, and those applying for loans may soon see better rate options available.
Wednesday’s move marks the fourth cut by the central bank in 2025 and the second since March after September’s cut.
The Bank of Canada has been gradually adjusting its monetary policy down from a peak of five per cent in April 2024, after raising rates to curb red-hot inflation.
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Governor Tiff Macklem at the Bank of Canada will deliver remarks and answer questions from the media at 10:30 a.m. Eastern time.
– More to come
