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Bank of Canada Cuts Rate to 2.5% Amid Economic Weakness

10/2/2025

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Summary

Story summary

Bank of Canada cut its policy rate to 2.5% on September 17, 2025, citing a weakening economy and easing inflation.
The decision reflected a softer labor market and the removal of most retaliatory tariffs by the federal government.
It will publish growth and inflation projections in its October report, marking a shift from prior multiple-scenario forecasts.

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Story summary

Bank of Canada cut its policy rate to 2.5% on September 17, 2025, citing a weakening economy and easing inflation.
The decision reflected a softer labor market and the removal of most retaliatory tariffs by the federal government.
It will publish growth and inflation projections in its October report, marking a shift from prior multiple-scenario forecasts.