Bank of Canada cuts interest rate by half a percentage point, highlights risk of Trump’s tariffs

Associated Press

TORONTO (AP) — Canada’s central bank lowered its key interest rate by half a percentage point while highlighting the risk of U.S. President-elect Donald Trump’s threat of tariffs on all Canadian products. The Bank of Canada’s decision marked the fifth consecutive reduction since June and brings the central bank’s key rate down to 3.25%.  The central bank noted a number of risks to the economy, including U.S. tariffs. Trump has threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico unless they stem the flow of migrants and drugs.