Canada central bank makes half point rate cut to 3.25% [Video]

Canada’s central bank on Wednesday lowered its key lending rate by 50 basis points to 3.25 percent, seeking to aid a slowing economy facing uncertainty following a tariff threat from US President-elect Donald Trump.

The cut is the Bank of Canada’s fifth since June — in line with expectations. It previously raised rates from record lows in 2023 to rein in inflation, which has fallen to its target level.

“The Governing Council decided to reduce the policy rate by a further 50 basis points to support growth and keep inflation close to the middle of the 1-3 percent target range,” the bank said in a statement.

It noted the Group of Seven economy had grown at a slower pace than anticipated in recent months. It will likely slow further next year, due partly to an announced reduction in immigration levels, the bank predicted.

“The possibility the incoming US administration will …