Bank of Canada Lowers Key Interest Rate to 3 Percent Amid US Tariff Threat

Bank of Canada governor Tiff Macklem speaks at a press conference in Ottawa on Dec. 11, 2024. The Canadian Press/Adrian Wyld

OTTAWA—The Bank of Canada announced a 25 basis point reduction of its key interest rate, its sixth consecutive interest rate decrease since last June, while warning that the imposition of U.S. tariffs remains a “major uncertainty.”

In his opening statement on the Jan. 29 update, Bank of Canada Governor Tiff Macklem said U.S. tariffs “could be very disruptive to the Canadian economy and is clouding the economic outlook.”