Election 2025 live updates: Carney, Poilievre and other party leaders cast vote as Canadians head to the polls [Video]

04/28/25 15:50

– Matt Lundy

Here’s something Canada’s next prime minister can (almost certainly) bank on: lower interest rates.

The consensus on Bay Street and among investors is that the Bank of Canada will lower its policy interest rate – now at 2.75 per cent – several more times this year. The swaps market, which captures investor expectations of monetary policy, suggests the rate will fall to 2 per cent by December.

That would bring relief to many consumers and businesses – and lower the government’s own debt payments. But this rosy scenario is tempered by the wide-ranging effects of the trade war, which will constrain economic growth and push up prices, a phenomenon known as stagflation. And as the Bank of Canada has said many times, it has a limited number of tools to counter the fallout from steep U.S. tariffs.

04/28/25 15:44

– Laura Stone

Hi, I’m Laura Stone, a Queen’s Park reporter for The …