The Bank of Canada (BoC) cut its overnight rate by 50 basis points to 3.25%, reaffirming its commitment to Quantitative Tightening (QT). The central bank stated that economic development has been slower than projected, with the economy expanding by only 1% in the third quarter, falling short of the BoC's October prediction, and the fourth-quarter prognosis is also poorer than predicted.

The central bank notes that inflation has remained at about 2% over the summer and is predicted to stay near the 2% target for the foreseeable future, so it is not a major issue at the moment. A number of other issues affecting the economic outlook were also mentioned by the Bank of Canada, including the government's immigration policies, new mortgage legislation, one-time payments, the GST break, and the potential effects of tariffs.

The Bank of Canada is adopting a more cautious stance going forward, emphasizing that it has already implemented significant rate reductions since June and will carefully evaluate the necessity of additional rate cuts on an individual basis.