POWER: EdF Announces Industrial Action on 1-2 December

Following are the Instant Answers for the Bank of Canada interest-rate decision:

• Target for overnight rate: Reduced by 25 basis points to 2.25%, as expected
• Does the Bank signal it is prepared to lower rates in the future? Yes
• Does the Bank say lower interest rates will likely be needed in the future? No
• Does the Bank signal it intends to leave rates on hold? Yes
• Does the Bank mention core or underlying inflation has been elevated? Yes
• Does the Bank say it may be less forward looking with policy? No

• BANK OF CANADA CUTS KEY RATE 25BPS TO 2.25%, SIGNALS PAUSE
• BOC SAYS CURRENT RATE CAN KEEP CPI NEAR 2% IF FORECAST HOLDS
• BANK OF CANADA SAYS PREPARED TO RESPOND IF ITS OUTLOOK CHANGES
• BOC SEES 2026 GROWTH OF 1.1%, SAYS SLACK TAKEN TO BE UP SLOWLY
• BOC SAYS HAS LIMITED ROLE HELPING CANADA ADJUST TO TRADE SHOCK

• BOC goes for a second straight policy rate cut of 25 bps, bringing it to 2.25%, as expected by most economists.
• "If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment." 
• Bank also prepared to respond if outlook changes.
• GDP growth seen about 0.75% annualized in the second half of the year following "severe" US tariff impact on autos, steel, aluminum and lumber. 
• Bank projects GDP to grow 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027, with excess economic capacity expected to persist and be taken up gradually.
• Inflation pressures anticipated to ease in months ahead with CPI inflation holding near 2%. BOC's preferred measures of core inflation "sticky" around 3%.
• Bank says monetary policy's usefulness limited in Canada's adjustment to trade shock; cannot restore economy to pre-tariff levels of GDP.