Market News
Bank of Canada cuts rates by 25 bps, warns of tariff crisis - REUTERS
By Promit Mukherjee and David Ljunggren
Summary
- Trade conflict would slow first-quarter GDP, bank said
- Conflict could disrupt recovery in the jobs market, it said
- Inflation is expected to go up to around 2.5% in March
- Chances of another rate cut in April are around 45>#/li###
OTTAWA, March 12 (Reuters) - The Bank of Canada trimmed its key policy rate by 25 basis points on Wednesday to 2.75% and raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty and President Donald Trump's tariffs.
The bank also said it would "proceed carefully with any further changes" to rates given the need to assess both the upward pressures on inflation from higher costs and the downward pressures from weaker demand.
