Bank of Canada opts for another 50bp cut
Governor says Trump tariffs would be “highly disruptive” if implemented as proposed
The Bank of Canada’s governing council chose a larger 50 basis point rate cut for the second consecutive meeting on December 11, as the threat of tariffs imposed by the US “clouded” the outlook.
The decision brought the policy rate to 3.25% and was the fifth cut in a row since May.
Governor Tiff Macklem said there were two key reasons for the decision. The first was that the policy had “worked”, with inflation exactly on target at 2% in October. The second was the “softer” economic outlook. GDP
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