Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, on June 22, 2020. File Photo / Reuters
Ottawa: The Bank of Canada on Wednesday cut its key lending rate 25 basis points to 3.0 percent, noting that US tariff threats are creating uncertainty for the economy.
"The economy is expected to strengthen gradually and inflation to stay close to target (of 2 percent)," the central bank said. "However, if broad-based and significant tariffs were imposed, the resilience of Canada's economy would be tested."
"A protracted trade conflict (with the United States) would most likely lead to weaker GDP and higher prices in Canada," it added.
