On March 12, 2025, the Bank of Canada (BoC) lowered its key overnight rate by 25 basis points to 2.75%, the central bank’s seventh consecutive cut. While every BoC announcement is watched closely, this latest move drew widespread attention given today’s unprecedented geopolitical and macroeconomic turmoil.

U.S. President Donald Trump's announcement of a proposed 25% U.S. tariff on Canadian exports could mean higher prices for consumers and significant changes for businesses on both sides of the border.

For the third time in as many meetings, the Bank of Canada (“BoC”) has reduced interest rates by 0.25%. After the announcement on September 4, the BoC’s overnight rate is currently 4.25%, which means most financial institutions in Canada may also be poised to adjust their lending and savings rates accordingly.

After a prolonged stretch when interest rates remained relatively high, the Bank of Canada (“BoC”) has entered a rate-cutting cycle whereby, on July 24, 2024, we had our second rate cut of 0.25%. This rate reduction followed the initial 0.25% rate cut announced on June 5, 2024.

In recent years, Canadians have been dealing with higher interest rates amid a prolonged period of surging inflation. The Bank of Canada (BoC) raised its key policy rate from 0.25% in March 2020 to 5% in July 2023 – a level the BoC had maintained until announcing on June 5, 2024, that its key policy rate is declining by 0.25%, to 4.75%.

In the unpredictable journey of life, unforeseen circumstances and emergencies can strike at any moment, leaving us financially vulnerable. That’s why having an emergency fund is not just a financial strategy; it’s a crucial aspect of maintaining stability and peace of mind.