Bank of Canada drops key interest rate to 2.75%

A looming trade war has prompted the Bank of Canada (BOC) to cut its key interest rate for the seventh time in a row.

The BOC announced this morning (Wednesday) that it’s cutting the rate by a quarter point to 2.75 per cent.

While inflation has been kept in check, Bank of Canada officials say trouble with the United States could change that quickly.

BOC Governor Tiff Macklem says in prepared remarks that trade uncertainty was already causing “harm” to the economy before tariffs were imposed this month.