7 powerful ways the Bank of Canada’s rate cut could change your financial future

The Bank of Canada (BoC) announced the first rate drop of 2025 — with a 25 basis point rate cut to its overnight rate. The rate cut of 0.25% was announced on January 29, 2025, following a 50 basis point cut in December 2024. The BoC's target rate now stands at 3.00% — pushing the bank prime rate to 5.20%.

This latest rate reduction reflects the ongoing economic uncertainty due, in part, to global unrest, the threat of trade wars and a sluggish domestic economy. For most Canadians, the real question is how this latest rate cut will affect their everyday living costs and those saving for a large purchase, such as buying a home.

Read More