Canada Interest Rate Forecast 2025. This could result from a cautious approach by the bank of canada, as. Td economics projected canada’s cpi to average 6.7% in 2022 and ease to 3.5% in 2023, according to their latest forecast in june.

The same story will be repeated in reverse for 2025 as momentum from interest rate cuts will gradually build up and start supporting growth. Canada’s interest rate now stands at 3.25%, still well above 2022’s rock bottom 0.25% but still far enough below the us’ fed funds rate, which only declined from 5.5% to 4.5%.