Bank of Canada mulled later timing for October rate cut, deliberations show

By Canadian Press on November 12, 2025.

OTTAWA — The Bank of Canada’s governing council was on the same page about the need to lower its benchmark interest last month — but the exact timing of the cut was up for debate.

The central bank today released the summary of deliberations from its decision two weeks ago to lower the policy rate by a quarter point to 2.25 per cent in its second consecutive cut.

Council members felt the cut was warranted as a weak economy hampered by U.S. tariffs would keep inflation around the Bank of Canada’s two per cent target for the foreseeable future.

But some suggested that waiting until a later decision would give monetary policy-makers a better sense of how the economy was reacting to U.S. trade shifts as well as Ottawa’s long-anticipated federal budget tabled just last week.

Arguments to cut sooner rather than later won the day amid a soft labour market and weak growth expectations for the second half of the year.

With that cut, the central bank’s governing council felt the Bank of Canada had likely done all it can to smooth the tariff transition and further rate reductions would likely be unnecessary if the economy continues to evolve in line with its expectations.

This report by The Canadian Press was first published Nov. 12, 2025.

Craig Lord, The Canadian Press