The Bank of Canada is poised to announce its decision on interest rates this Wednesday morning. This announcement marks the first update on economic forecasts since January.
Current Interest Rate Status
Last month, the central bank reduced its key interest rate by 0.25 percentage points to 2.5%. This was the first decrease since March. Economists anticipate another consecutive cut in response to the weakening economy impacted by U.S. tariffs.
Inflation Insights and Economic Predictions
In September, annual inflation increased by 0.5 percentage points to reach 2.4%. However, BMO Chief Economist Doug Porter noted that stable underlying inflation figures could support the case for another rate cut.
- Current interest rate: 2.5%
- September inflation rate: 2.4%
- Previous rate cut: March
- Upcoming federal budget: Next week
The Bank of Canada has refrained from releasing economic forecasts for several months due to growing uncertainties surrounding international trade. This Wednesday, it will provide insights into its economic outlook and inflation trends in a new monetary policy report.
The decision regarding interest rates will be made without a comprehensive view of the federal government’s finances, as Ottawa plans to present its autumn budget shortly thereafter.
