Quick answer
On October 29, 2025, the Bank of Canada cut its policy (overnight) rate to 2.25%. Inflation (CPI) was running at 2.2% (core 2.9%) and unemployment was 6.9% at the time.
Josh breaks down what the cut to 2.25% means: the Bank’s rate is now the lowest it’s been since July 2022. If you’re in a variable-rate mortgage the benefit is immediate; if you’re renewing off a fixed rate, the downward trend helps you too.
The rate path (2023–2025)
The Bank of Canada policy rate over the 2½ years around this decision. It moved to 2.25% 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 2.2% at the time.
Heads up: this covers the decision on October 29, 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 October 29, 2025?
Yes — on October 29, 2025 the Bank of Canada cut its policy (overnight) rate to 2.25%.
What was the Bank of Canada's policy rate in October 2025?
2.25% — the target for the overnight rate, with inflation (CPI) around 2.2%.
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.