{"id":143540,"date":"2025-09-17T15:26:12","date_gmt":"2025-09-17T15:26:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/143540\/"},"modified":"2025-09-17T15:26:12","modified_gmt":"2025-09-17T15:26:12","slug":"bank-of-canada-delivers-1st-interest-rate-cut-since-march-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/143540\/","title":{"rendered":"Bank of Canada delivers 1st interest rate cut since March &#8211; National"},"content":{"rendered":"<p>\t\t\tDescrease article font size<\/p>\n<p>\t\t\tIncrease article font size<\/p>\n<p>Borrowing costs are coming down for some Canadians after the Bank of Canada on Wednesday delivered its first interest rate cut since March, lowering its overnight benchmark by 25 basis points from 2.75 per cent to 2.5 per cent.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/70c8fc80.png\" alt=\"\" style=\"position:absolute;width:1px;height:1px\" referrerpolicy=\"no-referrer-when-downgrade\"\/><\/p>\n<p>Commercial lenders, like private banks, base their rates off of the key policy rate set by the central bank.<\/p>\n<p><a href=\"https:\/\/www.bankofcanada.ca\/2025\/09\/fad-press-release-2025-09-17\/\" rel=\"nofollow noopener\" target=\"_blank\">The Bank of Canada noted <\/a>a \u201cweaker economy\u201d amid the <a href=\"https:\/\/globalnews.ca\/news\/11394651\/mark-carney-donald-trump-tariffs-strategic-sectors\/\" rel=\"nofollow noopener\" target=\"_blank\">current trade war<\/a> including the <a href=\"https:\/\/globalnews.ca\/news\/11355608\/canada-gdp-june-2025\/\" rel=\"nofollow noopener\" target=\"_blank\">latest reports on GDP<\/a> as well as the<a href=\"https:\/\/globalnews.ca\/news\/11394548\/canada-jobs-report-august-2025-statistics-canada\/\" rel=\"nofollow noopener\" target=\"_blank\">\u00a0unemployment rising<\/a> above seven per cent last month meant \u201ca reduction in the policy rate was appropriate.\u201d<\/p>\n<p>Meanwhile, the Bank says inflation has remained relatively stable, with <a href=\"https:\/\/globalnews.ca\/news\/11430152\/consumer-price-inflation-statistics-canada-august-2025\/\" rel=\"nofollow noopener\" target=\"_blank\">price growth for consumers<\/a> and businesses falling within its target range of between one and three per cent on an annual basis.<\/p>\n<p>\t\t\t\t\t<img decoding=\"async\" width=\"170\" height=\"225\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/national.jpg\" alt=\"Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.\"\/><\/p>\n<p>\t\t\t\t\tGet daily National news<\/p>\n<p>Get the day&#8217;s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.<\/p>\n<p>\u201cWith a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks,\u201d the Bank of Canada said in the statement.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\u201cThe disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval.\u201d<\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-video__image\" alt=\"Click to play video: 'How do central banks decide interest rates?'\" width=\"640\" height=\"360\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/250730-ANNE.jpg\" loading=\"lazy\"   data-\/><\/p>\n<p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2:20<br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tHow do central banks decide interest rates?\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>\n\t\tTrending Now\n\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11431596\/cusma-trade-review-us-consultations-launch\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/cffc3242bd0ff0567216b9ccce082ef143976c54e40b845ec4699676b610609d.jpg\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tU.S. to launch CUSMA consultations ahead of scheduled trade pact review\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11430491\/air-canada-union-mediation-flight-attendant-wages\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/Air-Canada-Flight-Attendants-mediation.jpg\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tAir Canada, union agree to end mediation on flight attendant wages\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>The Bank of Canada had previously held its overnight rate for the past three meetings, with Governor Tiff Macklem on multiple occasions referring to the <a href=\"https:\/\/globalnews.ca\/news\/11311045\/bank-of-canada-july-rate-announcement\/\" rel=\"nofollow noopener\" target=\"_blank\">\u201cuncertainty\u201d of the economic outlook<\/a> requiring a more cautious approach to monetary policy \u2014 especially with the evolving trade war and tariff policies.<\/p>\n<p>Macklem is scheduled to deliver remarks and answer questions at a press conference starting at 10:45 a.m. EST.<\/p>\n<p>\u2013\u00a0More to come<\/p>\n<p>\n\t\t\tMore on Money<br \/>\n\t\t\tMore videos\n\t\t<\/p>\n<p>\n\t\t&amp;copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"Descrease article font size Increase article font size Borrowing costs are coming down for some Canadians after the&hellip;\n","protected":false},"author":2,"featured_media":143541,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[29362,84,626,1319,1294,814,56,54,55],"class_list":["post-143540","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-canada","tag-business","tag-canada","tag-consumer","tag-economy","tag-interest-rates","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/143540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=143540"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/143540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/143541"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=143540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=143540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=143540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}