The Bank of Canada announces a 25 basis point interest rate cut to address tariff impacts. The future policy path still remains uncertain.

According to the China Fortune Financial APP, the Bank of Canada announced at its interest rate meeting on Wednesday that it will cut the overnight benchmark interest rate by 25 basis points to 2.5%, marking the first rate cut since March of this year. This move was in line with market expectations and aimed to address the ongoing impact of US tariffs on the Canadian economy and job market. However, the central bank did not clearly indicate a future loosening path in its statement, showing that decision-makers are maintaining a cautious balance between downward economic pressure and inflation risks.