Bank of Canada Cuts Policy Rate to 2.50%: What It Means for Edmonton Real Estate

What Just Happened

On September 17, 2025, the Bank of Canada cut its overnight policy rate by 25 basis points, bringing it down to 2.50%. The Bank Rate now sits at 2.75%, while the deposit rate is 2.45%.This marks the Bank’s first cut since its summer pause, and many economists believe it could be the start of a modest easing cycle heading into 2026. Source: Bank of Canada

Why the Bank of Canada Cut Rates

The Bank cited a mix of slowing growth, softening labour markets, and cooling inflation as the main reasons:

  • Economic slowdown – Canada’s economy shrank by about 1.5% in Q2, with exports down sharply and business investment falling.

  • Inflation…

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Bank of Canada Rate Decision: September 17, 2025 Forecast – Will the Overnight Rate Finally Drop?

Here’s a look at why the Bank of Canada is likely to reduce interest rates for tomorrow's rate announcement, and what it means for you.

Why a cut is on the table

1) Inflation is back near target (and softening under the hood).
August CPI came in at 1.9% year-over-year, below expectations and essentially at the Bank’s 2% midpoint. Ex-gasoline CPI eased to 2.4%, while the Bank’s preferred core measures (CPI-median and CPI-trim) held around 3.1% and 3.0% and have been edging down. Markets took that as “permission” for a cut. 

2) Growth has rolled over.
Q2 GDP contracted at a –1.6% annualized pace, much weaker than Q1 and consistent with the Bank’s…

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