Source: Sharecast
It said in a statement: "With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points.
"If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond. Governing Council will be assessing incoming data carefully relative to the Bank’s forecast."
The BoC is projecting GDP growth of 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027. On a quarterly basis, growth is expected to strengthen in 2026 after a weak second half of this year.
It said excess capacity in the economy is expected to persist and be taken up gradually.
TD Securities said: "We believe 2.25% will mark the end of the BoC's easing cycle. MPR revisions were modest, and the Bank's central forecast in the October MPR is broadly in our with our projections for the near-term outlook.
"The guidance shift should also reinforce a high bar for the Bank to cut again this year, although policy will become more data dependent in 2026."