Ottawa — The Bank of Canada is set to announce its latest interest rate decision this morning, alongside updated economic forecasts in its first Monetary Policy Report since January.
The move comes one month after the central bank delivered its first rate cut in over a year, lowering its key rate by a quarter percentage point to 2.5 per cent. Most economists expect the bank to follow up with another cut today, as Canada’s economy shows signs of weakness amid escalating U.S. trade tariffs.
Although annual inflation edged up to 2.4 per cent in September, BMO chief economist Doug Porter said core measures of inflation likely remained subdued, giving policymakers room to ease rates further.
The Bank of Canada has avoided issuing detailed projections for months due to global trade uncertainty but will now provide fresh guidance on growth and inflation expectations. The new report is expected to assess how tariffs, consumer spending, and employment trends are influencing the path forward for monetary policy.
Today’s announcement also comes ahead of the federal government’s fall budget, scheduled for next week, meaning the bank’s decision will be made without a complete picture of fiscal policy.
The Bank of Canada’s rate decision and forecasts will be released at 10:00 a.m. ET, followed by a press conference with Governor Tiff Macklem.