Quick answer
This is Josh & Jay's preview ahead of the Bank of Canada decision around January 24, 2025. Inflation (CPI) was running near 1.9% and unemployment near 6.7% at the time.
Josh breaks down the handful of factors pointing to a smaller (quarter-point) cut rather than the half-point moves that closed 2024 — and why the trend still pointed down. (The Bank did go on to cut to 3.00% on January 29.)
The rate path (2022–2025)
The Bank of Canada policy rate over the 2½ years around this decision.
Inflation vs the 2% target
Total CPI and the Bank's core measure against its 2% target — the “why” behind the decision. Inflation was 1.9% at the time.
Heads up: this covers the decision on January 24, 2025. Rates move constantly — for the rate and options that apply to you today, book a call.
Frequently asked
What does a Bank of Canada decision mean for my mortgage?
If you're in a variable-rate mortgage, a cut lowers your rate (and payment or the interest portion) right away, while a hold leaves it unchanged. If you're on a fixed rate, it matters most at renewal. For what it means for your specific situation, book a call with Josh.