The Bank of Canada is pictured on Wellington Street in Ottawa. (CBC/Radio-Canada)
The Bank of Canada has cut its overnight lending rate by 25 basis points to 2.75 per cent, it announced on Wednesday.
In a note explaining the decision, the bank said the economy started the year strong, with solid GDP growth and inflation within its two per cent target. But tariff uncertainty has weighed on business spending and consumer confidence.
It’s “against this backdrop” that the central bank decided to cut the rate by a quarter point, Bank of Canada governor Tiff Macklem wrote in his remarks, which were released in advance of his 10:30 a.m. ET press conference.
More to come.
ABOUT THE AUTHOR
Jenna Benchetrit is the senior business writer for CBC News. She writes stories about Canadian economic and consumer issues, and has also recently covered U.S. politics. A Montrealer based in Toronto, Jenna holds a master’s degree in journalism from Toronto Metropolitan University. You can reach her at jenna.benchetrit@cbc.ca.
