Bank of Canada Cuts to 2.5%, Moving ‘Carefully’ Amid Risks

The Bank of Canada cut interest rates as the economy and labor market show damage from US tariffs, but kept tight-lipped on any future path for monetary easing.

Officials led by Governor Tiff Macklem cut the benchmark overnight rate by a quarter percentage point to 2.5% on Wednesday, the first reduction in borrowing costs since March and matching expectations of markets and the majority of economists in a Bloomberg survey.