The Bank of Canada has announced cutting its overnight lending rate by 25 bps to 2.75 per cent, as an ongoing tariff war with the US shows no signs of calming down.
The bank rate is at 3 per cent and the deposit rate is at 2.7 per cent.
Heightened trade tensions and tariffs imposed by the US will likely slow the pace of economic activity and raise inflationary pressures in Canada, it noted.
