Bank of Canada reduced its benchmark interest rate Wednesday but eased off the accelerator, cutting by 25 basis points to 3.0% amid growing trade tensions with the United States.
The move marks the central bank's sixth straight reduction, though at a more modest pace than its previous two 50-basis-point cuts. Markets had widely anticipated the quarter-point decrease.
Bank officials cautioned that Canada's economic outlook faces heightened uncertainty, specifically warning that the economy could face significant challenges if the U.S. follows through on threats to impose widespread tariffs on Canadian goods.
The measured approach signals the bank's careful balancing act between supporting growth and monitoring emerging risks.
