Bank of Canada meeting —

At its 29 January 2025 meeting, the Bank of Canada lowered its policy rate from 3.25% to 3.00%.

Decision

cut — 3.25% to 3.00%

Key passages

The Bank of Canada today reduced its target for the overnight rate to 3%, with the Bank Rate at 3.25% and the deposit rate at 2.95%. The Bank is also announcing its plan to complete the normalization of its balance sheet, ending quantitative tightening.

Rate cut and end of QT signal continued easing, supporting growth.

Canada’s labour market remains soft, with the unemployment rate at 6.7% in December.

Soft labour market provides rationale for additional policy support.

Meeting documents

Background reading

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