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2025-10-29 21:51:33
[Bank of Canada Cuts Rates by 25 Basis Points to 2.25%! A Difficult Choice Amid Weak Economy and Inflation Impasse] ⑴ The Bank of Canada lowered its overnight rate target by 25 basis points to 2.25%, with the bank rate adjusted accordingly to 2.5%. ⑵ This rate cut is based on the weak economic situation, while inflation is expected to remain near the 2% target. ⑶ The Bank believes the current policy rate level is generally appropriate, provided that inflation and economic trends are in line with expectations. ⑷ The Canadian labor market remains weak, and excess capacity in the economy is expected to be gradually absorbed. ⑸ Core inflation is stubbornly holding around 3%, but broader indicators suggest underlying inflation is around 2.5%. ⑹ The Bank expects inflationary pressures to ease in the coming months, with CPI inflation expected to remain around 2% during the forecast period. ⑺ The Bank is prepared to take appropriate action should the economic outlook change and will continue to closely monitor data performance. ⑻ The Canadian economy faces a difficult transition, and structural damage caused by trade conflicts limits the scope for monetary policy stimulus.
