Bank of Canada cuts interest rate by 25 basis points to 3%

The Bank of Canada announced on Wednesday that it would be lowering its interest rate by 25 basis points to three per cent, marking the sixth consecutive reduction since June. This decision comes amidst growing concerns over potential tariffs on Canadian imports by U.S. President Donald Trump, who has threatened to impose a 25 per cent tariff on all goods as early as Feb. 1.

This rate cut represents a slight slowdown from the central bank’s previous more significant cuts, which saw a half percentage point reduction in both October and December. These cuts were made as inflation levels remained at or below the bank’s target of two per cent.

Bank of Canada governor Tiff Macklem indicated last month that the pace of rate cuts would likely decrease in the future, suggesting a more measured approach moving forward.

The ongoing trade tensions and economic uncertainty have left many Canadians concerned about the potential impact on the economy. As the situation continues to evolve, the Bank of Canada remains vigilant in its efforts to support economic stability and growth.

With more developments expected in the coming weeks, it is crucial for Canadians to stay informed and prepared for any potential changes that may impact their financial well-being.

Stay tuned for further updates on this developing story.