Quick answer
On March 14, 2025, the Bank of Canada cut its policy (overnight) rate to 2.75%. Inflation (CPI) was running at 2.3% (core 2.7%) and unemployment was 6.8% at the time.
Josh and Jay break down what the cut means for your mortgage, your monthly budget and the broader economy, and whether more cuts were likely to come.
The rate path (2022–2025)
The Bank of Canada policy rate over the 2½ years around this decision. It moved to 2.75% here.
Inflation vs the 2% target
Total CPI and the Bank's core measure against its 2% target — the “why” behind the decision. Inflation was 2.3% at the time.
Heads up: this covers the decision on March 14, 2025. Rates move constantly — for the rate and options that apply to you today, book a call.
Frequently asked
Did the Bank of Canada cut interest rates on March 14, 2025?
Yes — on March 14, 2025 the Bank of Canada cut its policy (overnight) rate to 2.75%.
What was the Bank of Canada's policy rate in March 2025?
2.75% — the target for the overnight rate, with inflation (CPI) around 2.3%.
What does a rate cut 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.