Bank of Canada Announces Interest Rate Cut

Canada's central bank cuts interest rates by 25 basis points to 1.5%

The Bank of Canada announced today that it is cutting its target for the overnight rate by 25 basis points to 1.5%.

The Bank's decision to lower interest rates was made in light of the recent weakness in the global economy and the uncertainty surrounding the trade outlook. The Bank noted that the global economy has been slowing in recent months, and that trade tensions between the United States and China have weighed on business investment and economic growth. The Bank also noted that inflation in Canada remains below its target of 2%. The Bank expects inflation to rise gradually over the coming months, but it believes that a lower interest rate will help to support economic growth and inflation. The Bank's decision to lower interest rates is expected to have a positive impact on the Canadian economy. Lower interest rates will make it more affordable for businesses to borrow money and invest, and it will also make it cheaper for consumers to finance purchases. This should lead to increased economic growth and job creation. The Bank's decision to lower interest rates is also expected to have a positive impact on the Canadian dollar. A lower interest rate will make the Canadian dollar less attractive to foreign investors, and this should lead to a weaker Canadian dollar. A weaker Canadian dollar will make Canadian exports more competitive and will help to boost the Canadian economy.