Bank of Canada cuts interest rate by half a percentage point, highlights risk of Trump’s tariffs WSOC TV [Video]

TORONTO — (AP) — Canada’s central bank lowered its key interest rate by half a percentage point on Wednesday and called President-elect Donald Trump’s threat to impose sweeping new tariffs on Canada “a major source of new uncertainty.”

The Bank of Canada’s decision marked the fifth consecutive reduction since June and brings the central bank’s key rate down to 3.25%. Forecasters were widely expecting a big rate cut after the November labor force survey showed the unemployment rate rose to 6.8%.

Governor Tiff Macklem said in his prepared statement that the central bank opted for two large rate cuts in a row because inflation and economic growth don’t need to be restricted anymore. With inflation back at the 2% target, the central bank is now focused on keeping it there.

But the central bank noted a number of risks to the economy including Trump’s 25% tariff threat.

“The possibility the …