Will Bank of Canada cut rates tomorrow?
Posted by Corey Sylvester on
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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