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 open the possibility of further rate cuts in the future.  

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 last year, the Bank of Canada has implemented monetary easing measures seven consecutive times. In just nine months, the central bank has cut 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, the possibility of further easing at the next policy meeting (April 16) cannot be ruled out, as the central bank seeks to address inflationary pressures caused by U.S. tariffs.

The central bank stated that the Canadian economy entered a stable phase in 2025, with inflation close to the 2% target and strong GDP growth. However, escalating trade tensions and U.S. tariffs could slow the pace of economic activity in Canada and increase 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."