Bank of Canada Cuts Interest Rates

The Bank of Canada has cut interest rates by a quarter percentage point but has also stopped providing guidance on further adjustments to borrowing costs, Bloomberg News reported.

The central bank stated that, without tariffs, Canada’s economic growth would continue to strengthen while inflation remains close to its 2% target. I Photo: Bank of Canada Facebook

Trump’s threats of tariffs against America’s closest ally are creating economic uncertainty. The central bank stated that, without tariffs, Canada’s economic growth would continue to strengthen while inflation remains close to its 2% target.

“However, if broad-based and significant tariffs were imposed, the resilience of Canada’s economy would be tested,” the bank warned.

In response to Trump’s threats, Canada has promised to retaliate if the U.S. follows through with the proposed tariffs.