The Bank of Canada cut its key interest rate by 50bps for a second consecutive time in its December decision, as expected by markets. This is the fifth consecutive decrease since June and brings the rate to 3.

Canada’s central bank lowered its key interest rate by half a percentage point and called Trump's tariff threat “a major source of new uncertainty.”

In its final major cut of the year, the Bank of Canada has lowered the policy interest rate from 3.75% to 3.25%.