Bank of Canada cuts interest rates again

 

 

Amid concerns that the United States may impose tariffs on Canada, the Bank of Canada has cut key interest rates. The interest rate has been reduced by 25 basis points. With this, the interest rate has been reduced from 3.25 percent to 3 percent.

US President Donald Trump had stated that a 25 percent blanket tariff will be imposed on goods from Canada and Mexico on February 1. If such tariffs are imposed on all products from Canada, it could have a major impact on the country's economy. If that happens, the Canadian economy is likely to move into recession by the end of the year and inflation will rise. The Bank of Canada has reduced interest rates taking this into account. This is the sixth consecutive time that the Bank of Canada has cut interest rates.