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Macquarie's Economist Sees No Further Rate Cuts From Bank of Canada

BY MT Newswires | ECONOMIC | 10/30/25 12:28 PM EDT

12:28 PM EDT, 10/30/2025 (MT Newswires) -- The Bank of Canada cut the Overnight rate by 25bps to 2.25% on Wednesday, a development that was widely anticipated, said David Doyle, head of economics at Macquarie Group.

Forward guidance was neutral and suggested that the Overnight rate is now "at about the right level to keep inflation close to 2%."

This guidance was couched in data dependence, stating that the BoC "will be assessing incoming data carefully" relative to its outlook and is prepared to act further if needed.

Governor Tiff Macklem stressed the structural damage that has been done due to the shifts in the United States trade policy. This implies lower potential output growth and a lessening output gap, a shift that is likely a driver behind the BoC's guidance, stated Doyle.

Macquarie's forecast is for the BoC to stay unchanged with this release. Doyle pointed out he believes this was the final rate cut.

Near-term risks to this view lie in the direction of further easing. Should this occur, Macquarie sees January 2026 as the most likely timing of the next reduction.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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