OTTAWA, September 15, 2025 — The Bank of Canada is widely expected to announce a 25-basis-point cut to its key policy rate today, lowering the target for the overnight rate from 2.75% to 2.50%, according to a Reuters poll conducted September 9–12. 

This anticipated move marks the first rate cut since March, part of what many economists believe will be at least one more cut before the year ends, provided economic conditions don’t improve sharply. 

🔍 New Rates List: What’s Expected

Rate Type Current Rate Expected New Rate (from Sept 17 if move happens)
Overnight Target Rate (policy rate) 2.75%  2.50% 
Bank Rate (loans from BoC) ~ 3.00%  Likely 2.75% (following same 25-bp cut)
Deposit Rate (rate for deposits held at BoC) ~ 2.70%  Likely ~2.45%

Note: These figures are based on current expectations poll; final numbers will be confirmed when BoC issues the official statement.

MORE ARTICLES:

📉 Why the Cut Is Expected

  • Weakening Economy: Canada saw a loss of 65,500 jobs in August, pushing unemployment to a nine-year high outside of pandemic periods. 

  • GDP Decline: The second quarter showed a 1.6% contraction in economic activity, partly the result of U.S. tariffs on Canadian exports. 

  • Inflation Pressures Easing: While core inflation remains elevated, headline inflation is within the BoC’s target range of 1%-3%. This gives room for easing. 

💡 What This Means for Canucks

  • Mortgage Rates: If you have a variable rate mortgage, expect something like lower monthly payments. Fixed rate mortgages will adjust more slowly, depending on bond yields. 

  • Loans & Credit: Expect lending rates (e.g. for personal or auto loans) to follow suit somewhat — cheaper borrowing costs, though not immediately in every case.

  • Canadian Dollar: Already slipping, the loonie may weaken further ahead of the rate cut due to lifted expectations. 

🗓 Upcoming Dates to Watch

  • September 15, 2025 — Bank of Canada’s next rate announcement (also with Monetary Policy Report) 

  • October 29, 2025 — Subsequent policy interest rate meeting 

  • December 10, 2025 — Another rate decision date scheduled 

📢 Canada Interest Rate Update – September 17, 2025

The Bank of Canada is expected to cut its overnight rate from 2.75% to 2.50%, marking the first rate cut since March.
🔻 Why? Weak job growth, a shrinking economy, and easing inflation give the BoC room to act.
💰 What it means for you:

  • Lower variable mortgage payments

  • Slight relief on loans & credit

  • A weaker Canadian dollar

📅 Next rate decisions: Oct 29 & Dec 10, 2025.

Stay tuned — official confirmation comes today!

Stay tuned for the official rate announcement later today to see whether the forecast holds up.