Bank of Canada Governor Tiff Macklem attends a news conference in Ottawa on Sept. 17, 2025. Adrian Wyld/The Canadian Press
OTTAWA—The Bank of Canada announced it has lowered its policy interest rate to 2.25 percent, warning that the trade war with the United States has diminished Canada’s economic prospects.
“The structural damage caused by tariffs is reducing our productive capacity and adding costs. This limits the ability of monetary policy to boost demand while maintaining low inflation,” Bank of Canada Governor Tiff Macklem said on Oct. 29.
