Bank of Canada Continues Easing Cycle with Policy Rate Cuts

The Bank of Canada continued its easing cycle in 2025, reducing its central bank policy rate from ***** percent in January to **** percent by October, where it remained through year-end and into July 2026.

This marked a continuation of the initial policy pivot undertaken in 2024, when the Bank of Canada cut its policy rate from **** percent to **** percent in June, marking the first rate reduction since March 2020.

The rate cuts in 2025 were significant, with further reductions following in September and October, as the central bank sought to stimulate economic growth.