Bank of Canada lowers key rate to 2.25% signaling near end of easing cycle

The Bank of Canada reduced its benchmark overnight lending rate to 2.25%, marking a likely pause in its monetary easing campaign. Policymakers said further adjustments will depend on inflation and growth trajectories. The decision follows months of cautious guidance as global central banks reassess economic risks tied to slowing demand. Analysts expect the bank to hold rates steady through early 2026 unless inflation deviates significantly. The move influences currency markets and global rate expectations amid synchronized policy moderation.