OTTAWA—The Bank of Canada has brought its key interest rates 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.
“Governing Council will proceed carefully with any further changes to our policy rate given the need to assess both the upward pressures on inflation from higher costs and the downward pressures from weaker demand,” Macklem said on March 12….