The Bank of Canada announced a further 25 basis point reduction in its key interest rate, bringing the policy rate down to 3.0%.
This marks the sixth consecutive rate cut since June 2024.
The decision was influenced by boosting household spending and supporting economic growth amid ongoing trade uncertainties with the United States.
Bank of Canada Governor Tiff Macklem noted that while inflation is currently around the 2% target, the potential impact of new tariffs could pose significant challenges to the Canadian economy.
The central bank emphasized that monetary policy alone cannot offset the economic consequences of a prolonged trade conflict.
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