Bank of Canada Lowers Policy Rate by 25 Basis Points
Jatinderbir Bajwa
Wednesday, October 29, 2025
Governor Tiff Macklem As Expected Made His Move
The BoC cut today the new rate is 2.25% on Residential & Commercial Bank Prime drops to 4.45%
It is Good news for everyone who have a Line Of Credit or a Variable Rate Mortgage in Canada
What's next?
Firstly, why did the BoC cut?
Answer is the Canadian Economy is circling the bowl & Tiff Macklem understands this very well
Data from Banks pours into the BoC daily & none of it is good
Credit card balances growing, mortgage default rates rising, auto loans go sour
All the Classic signs of a Recession approaching if not already here
Yes, the Canadian CPI Report showed a slight Inflation bump,CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated but the BoC doesn't have tools to make more Beef or improve Coffee Harvests
But they can inject money into the economy by reducing interest costs
What's the BoC's next move?
It's trickier from here: 2.75% to 2.25% is considered Neutral by the Bank 3.00% & up is pushing the Economy down & anything less than 2.25% is STIMULUS
More cuts are a direct admission Canada's Economy is in trouble
We know it's in trouble
But Central Bankers are usually a bit cautious about officially stamping We're Screwed on a country's economy
I think more cuts can come come
Don't pay too much attention to whatever comes out of the BoC Press Conference today
Events will drive future decisions
If the Economy continues to decline I am Hoping to see 2 More cuts in Q1 2026
More analysis of Fixed versus Variable Mortgages next week
The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation.
The next scheduled date for announcing the overnight rate target is December 10, 2025Governor Tiff Macklem As Expected Made His Move
The BoC cut today the new rate is 2.25% on Residential & Commercial Bank Prime drops to 4.45%
It is Good news for everyone who have a Line Of Credit or a Variable Rate Mortgage in Canada
What's next?
Firstly, why did the BoC cut?
Answer is the Canadian Economy is circling the bowl & Tiff Macklem understands this very well
Data from Banks pours into the BoC daily & none of it is good
Credit card balances growing, mortgage default rates rising, auto loans go sour
All the Classic signs of a Recession approaching if not already here
Yes, the Canadian CPI Report showed a slight Inflation bump,CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated but the BoC doesn't have tools to make more Beef or improve Coffee Harvests
But they can inject money into the economy by reducing interest costs
What's the BoC's next move?
It's trickier from here: 2.75% to 2.25% is considered Neutral by the Bank 3.00% & up is pushing the Economy down & anything less than 2.25% is STIMULUS
More cuts are a direct admission Canada's Economy is in trouble
We know it's in trouble
But Central Bankers are usually a bit cautious about officially stamping We're Screwed on a country's economy
I think more cuts can come come
Don't pay too much attention to whatever comes out of the BoC Press Conference today
Events will drive future decisions
If the Economy continues to decline I am Hoping to see 2 More cuts in Q1 2026
More analysis of Fixed versus Variable Mortgages next week
The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation.
The next scheduled date for announcing the overnight rate target is December 10, 2025 by Governor
The BoC cut today the new rate is 2.25% on Residential & Commercial Bank Prime drops to 4.45%
It is Good news for everyone who have a Line Of Credit or a Variable Rate Mortgage in Canada
What's next?
Firstly, why did the BoC cut?
Answer is the Canadian Economy is circling the bowl & Tiff Macklem understands this very well
Data from Banks pours into the BoC daily & none of it is good
Credit card balances growing, mortgage default rates rising, auto loans go sour
All the Classic signs of a Recession approaching if not already here
Yes, the Canadian CPI Report showed a slight Inflation bump,CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated but the BoC doesn't have tools to make more Beef or improve Coffee Harvests
But they can inject money into the economy by reducing interest costs
What's the BoC's next move?
It's trickier from here: 2.75% to 2.25% is considered Neutral by the Bank 3.00% & up is pushing the Economy down & anything less than 2.25% is STIMULUS
More cuts are a direct admission Canada's Economy is in trouble
We know it's in trouble
But Central Bankers are usually a bit cautious about officially stamping We're Screwed on a country's economy
I think more cuts can come come
Don't pay too much attention to whatever comes out of the BoC Press Conference today
Events will drive future decisions
If the Economy continues to decline I am Hoping to see 2 More cuts in Q1 2026
More analysis of Fixed versus Variable Mortgages next week
The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation.
The next scheduled date for announcing the overnight rate target is December 10, 2025Governor Tiff Macklem As Expected Made His Move
The BoC cut today the new rate is 2.25% on Residential & Commercial Bank Prime drops to 4.45%
It is Good news for everyone who have a Line Of Credit or a Variable Rate Mortgage in Canada
What's next?
Firstly, why did the BoC cut?
Answer is the Canadian Economy is circling the bowl & Tiff Macklem understands this very well
Data from Banks pours into the BoC daily & none of it is good
Credit card balances growing, mortgage default rates rising, auto loans go sour
All the Classic signs of a Recession approaching if not already here
Yes, the Canadian CPI Report showed a slight Inflation bump,CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated but the BoC doesn't have tools to make more Beef or improve Coffee Harvests
But they can inject money into the economy by reducing interest costs
What's the BoC's next move?
It's trickier from here: 2.75% to 2.25% is considered Neutral by the Bank 3.00% & up is pushing the Economy down & anything less than 2.25% is STIMULUS
More cuts are a direct admission Canada's Economy is in trouble
We know it's in trouble
But Central Bankers are usually a bit cautious about officially stamping We're Screwed on a country's economy
I think more cuts can come come
Don't pay too much attention to whatever comes out of the BoC Press Conference today
Events will drive future decisions
If the Economy continues to decline I am Hoping to see 2 More cuts in Q1 2026
More analysis of Fixed versus Variable Mortgages next week
The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation.
The next scheduled date for announcing the overnight rate target is December 10, 2025 by Governor
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !