Bank of Canada set to announce key rate decision, publish new forecasts

By Canadian Press on October 29, 2025.

OTTAWA — The Bank of Canada is set to make an interest rate announcement and publish updated economic forecasts for the first time since January this morning.

The central bank lowered its benchmark interest rate by a quarter point to 2.5 per cent last month in its first cut since March.

Most economists expect the bank will deliver a second consecutive cut this morning as the economy shows cracks in the face of U.S. tariffs.

Annual inflation rose half a point to 2.4 per cent in September but BMO chief economist Doug Porter argues readings of underlying inflation were likely calm enough to warrant another cut.

After forgoing economic forecasts for months in the face of mounting trade uncertainty, the central bank will also give an update on its outlook for the economy and the path for inflation in a new monetary policy report.

The Bank of Canada will make its rate decision without a full picture of federal government finances as Ottawa intends to table its fall budget next week.

This report by The Canadian Press was first published Oct. 29, 2025.

Craig Lord, The Canadian Press