Bank of Canada cuts interest rate by 25 basis points to 3%

The Bank of Canada lowered its interest rate by 25 basis points to three per cent on Wednesday, the sixth consecutive reduction since June.

The rate cut comes as U.S. President Donald Trump has threatened to impose a 25 per cent tariff on all Canadian imports, a move that could come as early as Feb. 1.

The rate cut marks a slowdown from the central bank’s two previous heftier cuts. It slashed its key rate by half a percentage point in October and December as inflation hovered at or below its two per cent target.

Bank of Canada governor Tiff Macklem said last month the bank would likely slow down the pace of cuts going forward.

More to come