The Bank of Canada announced a second consecutive 25-basis point cut to its overnight rate, lowering it to 2.25 per cent on October 29, 2025. This follows a similar reduction in September, part of the Bank’s ongoing response to economic challenges.

As a result, Agricultural Credit Corporation (ACC) is reducing its prime lending rate to 4.45 per cent, with the change effective October 30, benefiting producers across Canada who rely on ACC’s financing programs.

In its October 29 news release, the Bank cited several key factors in its decision:

-  A 1.6% contraction in Canada’s Q2 GDP, driven by falling exports and weak business investment

-  Continued softness in the labour market, with a 7.1% unemployment rate and slowing wage growth

-  CPI inflation at 2.4% in September, with underlying inflation indicators suggesting persistent pressures around 2.5%

-   Structural impacts from U.S. trade actions, particularly in sectors such as autos, steel, aluminum, and lumber

-  Global economic growth projected to slow, with trade tensions dampening investment worldwide

ACC offers three lending programs designed to support producers: the Advance Payments Program (APP), Commodity Loan Program (CLP), and the Ginseng Storage Loan Guarantee Pilot Program (GSLGPP).

For eligible producers with interest-bearing loans, the lower lending rate means:

• -  Reduced borrowing costs on variable-rate loans

• -  Improved cash flow for seasonal operations

• -  Easier access to financing for short-term needs

• -  More freedom to invest in production and infrastructure

These benefits come at a critical time for producers facing economic headwinds and uncertainty in global markets.

“As the Bank takes steps to stabilize the economy, ACC remains focused on ensuring producers have the financial tools they need to adapt, grow, and thrive in a changing landscape,” says Jaye Atkins, CEO of ACC. “We encourage producers to reach out and take advantage of the lower lending rate to strengthen their operations and plan for the season ahead.”

The Bank’s next rate announcement is scheduled for December 10, 2025, when it will reassess inflation trends, employment data and the evolving impact of global trade tensions and structural adjustments on the Canadian economy.  

Source: Agricultural Credit Corporation October 30 2025 news release