The Bank of Canada cut its overnight target rate by 25 basis points to 3.00% on 29 January, extending its easing cycle as the Governing Council pointed to inflation around 2% and excess supply in the economy, while warning of the uncertainty cast over the Canadian economic outlook by the threat of tariffs from the United States. The decision was published on the bank's website.
The press release said the outlook was subject to more-than-usual uncertainty because of the rapidly evolving policy landscape, particularly the threat of trade tariffs by the new US administration, and that the Governing Council would be closely monitoring developments and assessing the implications for economic activity, inflation and monetary policy.
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