Canada Lowers Key Interest Rate for the 7th Time Amid Tariff War with U.S.…3.00%→2.75%

# Bank of Canada Lowers Interest Rates in Response to U.S. Tariff Threats New York (Yonhap) — By Jiheon Lee — The Bank of Canada, the country's central bank, executed its seventh interest rate cut on the 12th (local time) in a bid to counteract tariff threats from the Trump administration. During a monetary policy meeting held on this day, the Bank of Canada announced a 0.25 percentage point reduction in the overnight repo rate, lowering it from 3.00% to 2.75%. Since initiating the rate-cutting cycle last June, the Bank of Canada has consistently cut its benchmark interest rates seven times. Last June to September, the central bank decreased rates by 0.25 percentage points at each meeting. However, during the October and December meetings last year, it doubled the reduction rate to 0.50 percentage points. In its January economic outlook, the Bank of Canada revised the growth forecast for this year downward to 1.8% from the previous 2.1%, without factoring in the impact of the tariff war with the United States. The Bank of Canada previously estimated that if Canada and other countries impose retaliatory tariffs of 25% against the U.S., Canada's economic growth rate could drop by 2.5 percentage points in the first year and 1.5 percentage points in the following year. Bank of Canada Governor Tiff Macklem warned, “We are now facing a new crisis,” noting that the economic impact could be severe depending on the scope and duration of the new U.S. tariffs. He expressed concern that the uncertainty of the tariff war is "broad" and is already causing damage. pan@yna.co.kr