Bank Of Canada Cuts Interest Rates By Another 25 Basis Points

(RTTNews) - With inflation close to the 2 percent target, the Bank of Canada on Wednesday announced its widely expected decision to lower interest rates by another 25 basis points, making its seventh straight rate cut.

The Bank of Canada said it decided to reduce its target for the overnight rate to 2.75 percent, with the Bank Rate at 3 percent and the deposit rate at 2.70 percent.

While the central bank noted Canadian economic growth has come in stronger than expected, it warned the pervasive uncertainty created by continuously changing U.S. tariff threats is restraining consumers' spending intentions and businesses' plans to hire and invest.

"Monetary policy cannot offset the impacts of a trade war," the Bank of Canada said. "What it can and must do is ensure that higher prices do not lead to ongoing inflation."

The Bank of Canada said it will be carefully assessing the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.