bank of canada/XFMNews
As 2025 closes, the Bank of Canada is widely expected to hold its benchmark rate steady at 2.25 per cent, marking a full point drop since the start of the year and capping what’s been a roller coaster 12 months of trade turmoil and economic uncertainty.
Economists said a string of surprisingly strong jobs reports and a robust 2.6 per cent jump in third-quarter GDP suggest the central bank has done enough for now to support growth while keeping inflation in check.
It seems that the rate cutting cycle that started early in 2025 is over, with monetary policymakers signaling they will “stand aside” unless incoming data demand otherwise.
For Canadians, that likely means borrowing costs stay low for now offering some breathing room in a year defined by economic uncertainty but also leaving markets closely tuned for what the next trade developments might bring.
