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Canada’s 2025 Budget and Rate Cuts Signal a Push to Restart Economic Growth

Canada's 2025 Budget and a 2.25% rate cut signal renewed focus on housing, growth, and affordability.

Canada’s 2025 Budget puts a strong focus on rebuilding economic momentum, with major funding directed toward housing supply, infrastructure renewal, and measures to support productivity and affordability. The plan signals a recognition that Canada’s growth has cooled and that more support is needed to keep pace with rising demand—especially in housing. At the same time, the Bank of Canada’s October rate cut to 2.25% reflects similar concerns, as softer business investment and slowing consumer activity prompt policymakers to ease financial conditions.

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