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Bank of Canada lowers interest rate to 2.5% in first cut since March
- On September 17, 2025, the Bank of Canada lowered its key interest rate by 25 basis points to 2.5 percent in Ottawa to support the economy.
- The rate cut responded to slower economic growth driven by a 1.5 percent GDP decline and a 27 percent drop in exports amid U.S. tariffs and trade uncertainty.
- August inflation remained steady at 1.9 percent while unemployment rose to 7.1 percent with job losses mainly in trade-sensitive sectors and ongoing wage growth easing.
- Governor Tiff Macklem explained that the decision to reduce the policy rate was unanimous among the council members, aiming to more effectively manage the evolving economic risks, particularly considering the easing of tariffs and reduced inflationary pressures.
- The Bank will closely monitor the effects of trade disruptions and economic risks to maintain price stability and support growth amid ongoing uncertainties.
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Canada's central bank cuts key lending rate citing Trump tariffs
Read: 2 min Canada’s central bank cut its key lending rate on Wednesday, offering a boost to borrowers in an economy squeezed by U.S. President Donald Trump’s trade war. The Bank of Canada reduced the rate to 2.5 per cent, after holding it at 2.75 per cent since March as it weighed the impact of Trump’s fluctuating tariffs on Canadian businesses heavily dependent on exports to the United States. But the bank said there was now clear evidence Tru…
The agency reduced the rate to 2.5%, after keeping it at 2.75 per cent since March
·Buenos Aires, Argentina
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New Hamburg independent+3 Reposted by 3 other sources
Bank of Canada drops key interest rate for first time since March
Governor of the Bank of Canada Tiff Macklem cited Canada’s softening labour market and removal of most retaliatory tariffs as reasons for the rate cut.
·New Hamburg, Canada
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Total News Sources101
Leaning Left31Leaning Right5Center11Last UpdatedBias Distribution66% Left
Bias Distribution
- 66% of the sources lean Left
66% Left
L 66%
C 23%
11%
Factuality
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