Bank of Canada drops key interest rate to 3% but warns of tariff uncertainty

Global News has the story.

The Bank of Canada delivered a sixth consecutive interest rate cut on Wednesday but slowed the pace of its easing cycle.

 

The central bank also warned that Canada’s economy would be “tested” if the United States delivers on a threat to impose blanket tariffs on Canadian goods, and said there was more “uncertainty” in its outlook because of the looming trade dispute.

 

The Bank of Canada cut its benchmark interest rate by 25 basis points, bringing the policy rate down to 3.0 per cent. The move was widely expected by markets and most economists.

 

Global's Mackenzie Gray reports.