OTTAWA—The Bank of Canada has brought its key interest rate down by 25 basis points to 2.75 percent, marking the seventh consecutive cut amidst “pervasive uncertainty” around the trade war with the United States.
Bank of Canada Governor Tiff Macklem said the imposition of 25 percent tariffs by the U.S. and the “pervasive uncertainty” caused by the country’s continually changing economic threats has harmed business and consumer confidence in Canada. The trade war is expected to lower economic activity, force businesses to reconsider hiring and investing, and increase inflation, he said.
