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.
“Considerable uncertainty remains. But with a weaker economy and less upside risk to inflation, the Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks going forward,” Bank of Canada Governor Tiff Mackelm said during a press conference on Sept. 17….