As we expected, the Bank of Canada announced this morning it is shaving another 25 basis points off of its trendsetting policy interest rate, taking it from 2.5% to 2.25%.

The Bank cited “ongoing weakness in the economy” as the rationale for the cut. The Bank also indicated that it is not overly concerned about the impact of a cut on consumer prices with “inflation expected to remain close to the 2% target.”

The Bank, however, stressed that it remains focused on the incoming data and is “prepared to respond” if its current projections change.

The next interest rate announcement date is set for December 10. Will the Bank of Canada pull the trigger again to close the year? It's possible, but they'll need to see more evidence that core inflation is cooling.

Either way, our view is that the Bank is near the end of this rate-cutting cycle as attention turns to economic levers beyond the Bank's control.

Like the rest of us, the Bank will be watching how much fiscal stimulus is brought forward in next week's federal budget and how the effort to get major projects built moves forward.

The Bank also presented a new economic projection for the Canadian economy of 1.2% growth in 2025, 1.1% in 2026 and 1.6% in 2027. “On a quarterly basis, growth strengthens in 2026 after a weak second half of this year.”

Although the national economy will continue to grow, these are not strong numbers with the Bank arguing that “the structural damage caused by the trade conflict [has reduced] the capacity of the economy.”

Answer to the previous trivia question: Pumpkins are a fruit.

Today’s trivia question: What ancient Celtic festival is thought to be the origin of Halloween?