Azerbaijan and Canadian Interest Rate Decisions in December 2025
December 10, 2025
the Bank of Canada’s overnight policy interest rate was left unchanged at 2.25% following today’s scheduled review today. That’s its lowest level since July 2022 and represents a cumulative decline of 275 basis points since June 2024. Today’s decision was not a surprise, since officials after its last cut (25 basis points in October) asserted that 2.25% appeared to be an appropriate end-point if growth and inflation evolve from here as they expect. In keeping the interest rate at 2.25%, they retained the same views about likely growth and inflation. Canada’s economy expanded faster than had been assumed during the summer quarter. Inflation is a tad above the 2% target, and tariff uncertainty and a fragile geopolitical relationship with the United States warrant caution.
There has been one central bank rate cut today already announced, and that comes from Azerbaijan. The reduction of 25 basis points to 6.75% was the seventh cut since November 2023 from a peak up to then of 9.0%. Consumer price inflation fell from from a high of 15.6% in Sept-Oct of 2022 to zero percent by April 2024, returned to as high as 6.3% in April-May of this year, but has slowed anew to 5.5% last month, which lies within the central bank’s 2-6% target range. Economic growth this year has been a tad short of 1.5%.
Copyright 2025, Larry Greenberg. All rights reserved.
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