The Bank of Canada lowered its key interest rate by 25 basis points to 2.5 per cent on Wednesday, marking its first cut since March.

A softer labour market, easing core inflation and the federal government's removal of retaliatory tariffs have reduced some "upside risk" to future inflation, governor Tiff Macklem noted in his opening remarks.

"Considerable uncertainty remains. But 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 going forward," he wrote.

Macklem and deputy Bank of Canada governor Carolyn Rogers are expected to speak in Ottawa at 10:30 a.m. ET.

That news conference will be carried live on this page.

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