Canada rate cut: Central bank trims lending rate to 2.5%; economy struggles under Trump’s tariff war

Sep 17, 2025 - 22:00
Canada rate cut: Central bank trims lending rate to 2.5%; economy struggles under Trump’s tariff war

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The Bank of Canada has lowered its key lending rate to 2.5% in response to the economic strain caused by US protectionism and trade tensions. Canada's GDP shrank significantly in the second quarter of 2025, with exports plummeting due to fading advance orders.

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