As widely expected, the Bank of Canada lowered its overnight rate to 3% from 3.25%: https://www.bankofcanada.ca/2025/01/fad-press-release-2025-01-29/.

For the DIY investor, no action needed. Expect cash/HISA interest rates to follow suit shortly.

For all the woes having holdings in US dollars causes me, I can take some solace in the fact that the equivalent US rate is almost a full percentage point higher. Don’t believe me? Compare the interest rates given by Scotia’s HISAs (DYN6004 in CAD, DYN6005 in USD) over here: https://ads.scotiabank.com/Investment-savings-account.

I was working on comparing a bunch of HISA interest rates (spoiler alert, as of yesterday the winner for highest rate paid on Canadian holdings went to B2B Bank), but given this announcement, the data I collected will all be null and void shortly. I guess I’ll revisit next week.