Experts anticipate Bank of Canada interest rate cuts tomorrow ahead of tariff threats

Canadian economists predict the Bank of Canada’s interest rate will be slashed tomorrow due to the pressure of a U.S. trade war.

The key interest rate — or overnight rate — is a national metric for mortgage loans, which recently had a rate cut in January, reducing it to a three per cent standard.

Real estate experts at Wahi surveyed 17 finance experts, including mortgage brokers, realtors and economists of various backgrounds to gain perspective on what form an upcoming rate cut may take.

As U.S. political fervor threatens Canada with tariffs, would-be annexation and a trade war, financiers and economists predict that the Bank of Canada will likely announce another interest rate cut tomorrow, March 12, 2025.

Using a pool of 17 experts, Wahi’s survey divided predictions for an upcoming rate cut as such:

• One expert: Believe the interest rate will be cut by 50 bps (basis points)
• 10 experts: Believe the interest rate will be cut by 25 bps (basis points)
• Six experts: Believe the interest rate will hold as is.

Additional findings cite that, even though many economists believe cuts will occur via trade pressure from the U.S. government, the only thing that has the potential to keep rates locked in place is the irregularity of ongoing threats.

According to Wahi’s report, the interest rate is likely to hold in place because U.S. President Donald Trump remains consistently inconsistent with his stance on tariffs, which may put inverse pressure on the Bank of Canada to slash national interest.

Even as this prediction holds for now, experts interviewed on behalf of Wahi noted that while the Bank of Canada may remain on the sidelines until there are more solid threats, the minute tariffs truly start inflicting serious damage, rate cuts will likely be seen immediately after.

For more information on Wahi’s report, visit their official website.