The Federal Reserve cut interest rates by 0.25% on November 7. More interest rate cuts are likely through the end of 2026.

The Fed is set to lower interest rates a quarter point Thursday. But it's more likely to slow, rather than speed up, 2025 cuts due to inflation

Interest rates are a key tool that the Bank uses to control the level of inflation. After the August drop from 5.25 per cent to 5 per cent, inflation also dropped unexpectedly. In September, the inflation rate (CPI) reached 1.7 per cent, dropping below the Bank’s 2 per cent target for the first time in more than three years.