The Bank of Canada has reduced its benchmark rate by 25 basis points, moving back into rate-cutting mode amid signs of a weakening economy and sluggish labour market.

The number of home sales recorded over Canadian MLS® Systems edged up 1.1% on a month-over-month basis in August 2025. It was the best month of August for sales since 2021, and the fifth straight monthly increase in activity, making for a cumulative 12.5% since March.

Economists and markets are expecting the Bank of Canada to cut its policy rate by a quarter point on Wednesday, barring any major surprises in the inflation data set to be released the day before.