What economists are saying about the Bank of Canada's rate decision

Bank of Canada signage is shown in Ottawa, Monday, Oct. 21, 2024. Photo by THE CANADIAN PRESS/Sean Kilpatrick

In a move widely expected by economists, the Bank of Canada cut its benchmark interest rate by 25 basis points to 2.5 per cent on Wednesday, amid a “weaker economy and less upside risk to inflation.”

“After remaining resilient to sharply higher U.S. tariffs and ongoing uncertainty, global economic growth is showing signs of slowing,” the central bank said in a statement.

Here’s how economists responded to the central bank’s decision, along with their outlook on future rate cuts.

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“The Bank of Canada’s decision to cut by 25 basis points today was of little surprise following the recent softer labour market dat