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Key interest rate in Canada drop by .25 per cent
PRINCE GEORGE—The Bank of Canada has reduced it’s key interest rate today. the central bank’s governing council says that their policy rate will be cut by a quarter-percentage point to three per cent.
It’s the sixth straight cut since June, with inflation sitting around two per cent. The governing council adds that the lower interest rates are boosting household spending and are expecting this to further strengthen the economy. However, Canada’s GDP growth projections have been revised down to 1.8 per cent for 2025 and 2026, factoring in lower population growth, due to a reduction in immigration, and a downward revision to business investment from increasing policy uncertainty.