The Bank of Canada cut its policy rate to 3.25 percent on Wednesday, a cut of 0.50 percent. The cut comes on the heels of what the BOC calls broad-based strength, with robust consumption and a solid labour market in the U.S. In the announcement, the BOC pointed to growth in the Canadian economy by 1.0 percent in Q3, with weaker projections heading into Q4. BOC governor Tiff Macklem (shown here) said the shift was the result of the country’s monetary policy no longer needing to be “clearly in restrictive territory.”
The possibility of new tariffs on Canadian exports to the United States has also increased uncertainty and clouded the economic outlook, according to the BOC.
Watch video announcement from Bank of Canada:
