The Bank of Canada lowered its key interest rate to 2.25%, signaling a possible end to rate cuts unless economic conditions change. This 25 basis point cut is the second in a row, bringing the rate to its lowest level since July 2022. Governor Tiff Macklem stated that the move aims to mitigate the impact of U.S. tariffs on the economy while maintaining inflation around the 2% target. The bank revised its growth forecast due to U.S. trade policy, predicting slower growth in 2025 and 2026 before a modest recovery in 2027. The Canadian dollar strengthened following the announcement, with no expected rate cuts until March next year.

Read more at Yahoo Finance: Bank of Canada trims key interest rate, hints at end to cuts