Bank of Canada Cuts Rates for the Seventh Consecutive Time: Will the Next Rate Decision Bring Another Cut?

TradingKey - The Bank of Canada has cut rates by 25 basis points as expected, leaving the door open for further reductions.  

On Wednesday, the Bank of Canada announced a 25-basis-point cut to its policy rate, reducing it from 3% to 2.75%, fully in line with market expectations.

Since June 5 of last year, the Bank of Canada has implemented monetary easing measures seven consecutive times. In just nine months, it has reduced its benchmark rate by a total of 225 basis points, including two 50-basis-point cuts and five 25-basis-point cuts, making it one of the most aggressive central banks globally.

Despite the significant rate cuts, further easing at the next policy meeting on April 16 cannot be ruled out, as the central bank seeks to address inflationary pressures stemming from U.S. tariffs.

The Bank of Canada stated that the Canadian economy entered a stable phase in 2025, with inflation near the 2% target and strong GDP growth. However, escalating trade tensions and U.S. tariffs could slow economic activity in Canada while increasing inflationary pressures.

Bank of Canada Governor Tiff Macklem also noted, "We will proceed cautiously in adjusting the benchmark rate, carefully assessing the upward pressure on inflation from rising costs and the downward pressure from weak demand."