Interest Rate
Bank of Canada lowers key interest rate to 2.75 per cent
Mar 12, 2025 | 11:36 AM
OTTAWA — The Bank of Canada has cut its key interest rate by a quarter point to 2.75 per cent as the tariff battle with the United States starts to weigh on the Canadian economy.
Bank of Canada governor Tiff Macklem says trade uncertainty was already causing harm to the economy before tariffs were imposed last week.
Macklem says consumer and business confidence is already “shaken” as Canadians wait to see how the shifting trade war will resolve.
The central bank is now expected to proceed carefully with further changes to interest rates.
