The cut was widely anticipated by private sector economists after inflation data from Statistics Canada showed consumer prices rose by 1.9 per cent in August year over year.

It’s the first time the central bank has lowered interest rates since March of this year.

Governor of the bank of Canada Tiff Macklem cited Canada’s softening labour market and removal of most retaliatory tariffs by Canada as reasons for the rate cut.

“With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks of going forward,” said Macklem in a statement to journalists.

Read more:
https://www.ctvnews.ca/business/article/bank-of-canada-cuts-key-interest-rate-to-25/