Bank of Canada lowers key interest rate to 2.25% in second straight cut

The Bank of Canada cut its benchmark interest rate by a quarter point Wednesday and signalled it may be satisfied with where the policy rate sits amid ongoing U.S. trade uncertainty.

The central bank’s key rate now stands at 2.25 per cent after a second consecutive cut.

Bank of Canada governor Tiff Macklem said in prepared remarks that monetary policymakers feel the policy is at “about the right level” to keep inflation close to the bank’s two per cent target while supporting the economy through tariff disruptions – provided the economy evolves in line with its expectations.

Economists widely expected Wednesday’s cut as Canada’s economy shows cracks from U.S. tariffs but inflation appears largely under control.

Macklem said the central bank is expecting the pressures pushing inflation