Bank of Canada cuts policy interest rate by 25 basis points again

Earlier today, the Bank of Canada made a surprising move by cutting the overnight interest rate by 0.25%, bringing it down to 2.75%. Despite most key economic indicators—such as core inflation, unemployment, and GDP growth—pointing towards maintaining the rate, the decision was influenced by growing economic uncertainty caused by tariffs and their potential impact on the Canadian economy.

The Bank of Canada’s choice to lower the rate reflects a cautious approach to safeguarding economic stability in the face of unpredictable global trade dynamics. While some may have expected a hold, the potential risks associated with tariffs were deemed significant enough to prompt preventive action.

This rate cut presents a potential opportunity for those considering a new mortgage or refinancing their existing one. Lower rates can mean significant savings over the long term, so it’s worth exploring your options.

Looking for trusted mortgage professionals to guide you through the process? Visit our TRU Realty partners at TRU Realty Partners to learn more!