BoC: Monetary Policy Decision Press Conference Opening Statement

The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%. After remaining resilient to sharply higher US tariffs and ongoing uncertainty, global economic growth is showing signs of slowing. In the United States, business investment has been strong but consumers are cautious and employment gains have slowed. US inflation has picked up in recent months as businesses appear to be passing on some tariff costs to consumer prices. Growth in the euro area has moderated as US tariffs affect trade. China’s economy held up in the first half of the year but growth appears to be softening as investment weakens. Global oil prices are close to their levels assumed in the July Monetary Policy Report (MPR). Financial conditions have eased further, with higher equity prices and lower bond yields. Canada’s exchange rate has been stable relative to the US dollar. Canada’s GDP declined by about 1½% in the second quarter, as expected, with tariffs and trade uncertainty weighing heavily on economic activity. Exports fell by 27% in the second quarter, a sharp reversal from first-quarter gains when companies were rushing orders to get ahead of tariffs. Business investment also declined in the second quarter. Consumption and housing activity both grew at a healthy pace. In the months ahead, slow population growth and the weakness in the labour market will likely weigh on household spending. Employment has declin BOC Says Rate Cut Appropriate Due To Weak Economy and Lower Inflation Risk, Monthly Core Inflation Gains Have Gone Away Earlier This Year Bank of Canada Promises To Sustain Economic Growth And Keep Inflation Under Control, While Ottawa Removes U.S. Import Tariffs To Reduce Price Increases BoC: Proceeding carefully, with focus on risks, uncertainties BoC removes forward guidance on rate cuts from policy statement.

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential construction statistics for August 2025. ...

BoC's Gov. Macklem: The Bank of Canada considered holding the overnight rate steady. Bank of Canada Governor Tiff Macklem Says Inflation Situation Has Remained Mostly the Same Since January Canada Bank Governor Macklem Says "We're Not Being As Forward-Looking As Normal" BoC's Gov. Macklem: We do need to consider where inflation is going; inflationary pressures look a little more contained. BoC's Gov. Macklem: If risks tilt further, we are prepared to take more action, will take it one meeting at a time.