On December 11, 2024, the Bank of Canada implemented a second consecutive 50-basis-point interest rate cut, bringing the policy rate to 3.25%, to stimulate the country’s slowing economy. Governor Tiff Macklem indicated that future rate adjustments would proceed more gradually, citing uncertainties such as President-elect Donald Trump’s proposed 25% tariffs on Canadian imports, which pose significant risks to Canada’s trade-dependent economy. The central bank aims to absorb excess capacity and maintain its 2% inflation target amid these challenges. Read more.
