The Bank of Canada is expected to announce its second-last interest rate decision of 2025 on Wednesday morning.
Despite an uptick in inflation last month, economists are largely expecting the central bank to give more support to the economy by lowering its key interest rate by 25 basis points.
That would bring the policy rate to 2.25 per cent from the current 2.5 per cent.
Experts surveyed by the Star predict the bank will cite rising unemployment and anxiety around the trade war as factors behind its decision.
“The reality is that the economy is in need of support,” Desjardins economist Royce Mendes wrote in a note to clients on Monday.
“Outside of the pandemic, the unemployment rate is standing at its highest level since 2016.”
The announcement is set for 9:45 a.m. It will be followed by a press conference held by Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers.
Also on Wednesday, the Bank of Canada will be publishing its quarterly report with projections for inflation and growth in the Canadian economy as well as an assessment of economic risks.
This is a developing story.
