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Julia Formejster Julia Formejster

Seventh Consecutive BoC Rate Cut: Responding to Trade Uncertainty

On March 12, 2025, the Bank of Canada reduced its target rate by 25 basis points to 2.75%, in line with market expectations. This marks the seventh consecutive rate cut as the BoC responds to escalating trade tensions and their impact on business investment and consumer sentiment. The BoC noted that while inflation remains stable, uncertainty related to trade tensions has weighed on business investment and consumer confidence, contributing to the decision to lower rates.

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