Bank of Canada Reduces Interest Rate to 2.5% - Fed Followed

29th October 2025

The Bank of Canada reduced its key overnight interest rate to 2.25% on Wednesday 29 October 2025, as widely expected. This could mark an end to its cutting cycle unless the outlook for inflation and economy changed.

The European Central Bank (ECB) is widely expected to hold interest rates steady on 30 October 2025 for a third consecutive meeting. Inflation in the eurozone is near target, and growth is stabilizing.

The Federal Reserve will make its next announcement later on 29 October.

The Bank of England rate announcement will be on 6 November 2025. Forecasts are that the BoE would hold its Bank Rate at 4.00%.