Global News ~ January 29th, 2025
The Bank of Canada warned after delivering another interest rate cut on Wednesday that Canada’s economy would be “tested” if the United States delivers on a threat to impose blanket tariffs on Canadian goods.
In a “severe” scenario mapped out by the central bank, those tariffs could simultaneously send the Canadian economy into a recession later this year and push inflation higher.
The Bank of Canada on Wednesday cut its benchmark interest rate by 25 basis points, bringing the policy rate down to 3.0 per cent.
The move — the central bank’s sixth cut in a row — was widely expected by markets and most economists.
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