OTTAWA — The Bank of Canada delivered another interest rate cut on Wednesday, reducing its policy rate by a quarter-percentage point to three per cent. But looming U.S. tariffs are weighing on the central bank’s economic outlook.
The cut, the central bank’s sixth consecutive one since June, comes as the bank said inflation is sitting around its two per cent target and the economy is picking up speed.
“There are signs economic activity is gaining momentum as past interest rate cuts work their way through the economy,” Bank of Canada governor Tiff Macklem said in prepared remarks.
But Canada’s economic outlook is clouded in uncertainty with U.S. tariffs looming.
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