On Wednesday, the Bank of Canada lowered its interest rate by 0.25% to 3%, marking the sixth consecutive cut since June. This follows a trend of rate reductions to help manage economic conditions.
This rate cut comes at a time when U.S. President Donald Trump has threatened to impose a 25% tariff on all Canadian imports, which could begin as early as February 1st.
Here’s a quick look at the recent rate changes:
March 12, 2025 (next announcement): ???
January 29, 2025: 3.00% (-0.25%)
December 11, 2024: 3.25% (-0.50%)
October 23, 2024: 3.75% (-0.50%)
September 4, 2024: 4.25% (-0.25%)
July 24, 2024: 4.50% (-0.25%)
June 5, 2024: 4.75% (-0.25%)
April 10, 2024: 5.00% (no change)
This rate cut follows larger reductions in October and December, where the Bank lowered rates by 0.50% each time. The goal? To keep inflation near its 2% target and to help support the economy.
Stay tuned as things continue to evolve!
