BREAKING NEWS: Bank of Canada cuts policy rate by 0.25%

Posted On Oct 29, 2025

BREAKING NEWS: The Bank of Canada lowered its benchmark interest rate by 25 bps to 2.25%. 

This puts the Prime Rate at commercial banks at 4.55%, lowering payments for variable rate mortgages and lines of credit. 

Fixed rates will NOT see the same decrease of 0.25%. 

MY PERSPECTIVE ON THE RATE CHANGE AND ECONOMY: 

• Inflation is rising but the economy is hurting. 
• The Bank of Canada shifted their focus away from inflation and instead focussing on the bigger current issues, unemployment and trade tariffs with the U.S.
• These rate decreases will help ease borrowing costs for households AND allow corporations to borrow money at lower costs to help stimulate growth and get the economy moving.   
• I expect we'll be in this economic cycle another few years -- time will tell, be wise with your money. 

CURRENT POSTED RATES:

Fixed rates: 3.94% to 4.49% 

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