OTTAWA—The Bank of Canada has lowered its key interest rate for the first time since March, reducing it from 2.75 percent to 2.5 percent.
The Bank said its governing council made the unanimous decision to lower rates because Canada’s labour market has further softened, inflation pressures have diminished, and there is less “upside risk” to future inflation because of the Canadian government’s removal of most retaliatory tariffs on the United States.
