Bank of Canada cuts rates to 2.25%
Released: Friday, October 31, 2025
There seems to be some financial relief for homeowners and prospective buyers. Earlier this week, the Bank of Canada delivered another interest rate cut — the fourth one this year, and the second consecutive cut since September 2025 — lowering its overnight rate by 25 basis points to 2.25%. Banks and other financial institutions set their lending rates based on the Bank of Canada’s benchmark. Lower overnight rates mean Canadians with variable-rate mortgages can expect to save a bit of money, and those applying for loans may begin to see more appealing options.
Data for the above chart comes from the Bank of Canada policy interest rate.
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