Bank of Canada cuts rates to 2.5% as expected

(Sharecast News) - The Bank of Canada cut interest rates on Wednesday by 25 basis points to 2.5%, as widely expected. This marked the first rate cut since March.

The Bank said in a statement: "With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks. Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity.

"Governing Council is proceeding carefully, with particular attention to the risks and uncertainties. Governing Council will be assessing how exports evolve in the face of US tariffs and changing trade relationships; how much this spills over into business investment, employment, and household spending; how the cost effects of trade disruptions and reconfigured supply chains are passed on to consumer prices; and how inflation expectations evolve."