ACC lowers prime rate following Bank of Canada cut

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).