Canada cuts interest rates for 1st time since March
The Bank of Canada just lowered its main interest rate to 2.5%—the first cut since March—to help kickstart a flagging economy.
With the country's GDP shrinking and exports dropping, the move is meant to encourage borrowing and spending when things are looking tough.
Unemployment has jumped to 7.1%
Unemployment has jumped to 7.1%, with over 100,000 jobs lost recently. Sectors like auto, steel, aluminum, and lumber are still struggling under tariffs.
Even though people spent more and housing stayed strong earlier this year, slower population growth and trade barriers could make it harder for businesses to hire or for spending to pick up.
Inflation is still below the bank's 2% target
Inflation is still below the Bank's 2% target as of September 2025, so there's less pressure to raise rates anytime soon.
Wage growth is also lagging because of rising unemployment.
The next update on interest rates will come on October 29, so keep an eye out if you're thinking about loans or big purchases.