Bank of Canada cuts interest rate by quarter-point to 2.75%

Bank of Canada’s March 12 interest rate announcement

The Bank of Canada cut its policy interest rate by a quarter percentage point to 2.75 per cent and warned of an economic downturn amid a trade war with the United States. This is the seventh consecutive rate cut since last summer.

Governor Tiff Macklem said the bank would “proceed carefully with any further changes” to the policy rate given the challenges of balancing the downside risk to economic activity with the upside risk to inflation caused by tariffs.