Bank of Canada cuts interest rate, warns it can do little to offset U.S. tariff impact [Video]

Canada’s central bank lowered its interest rate by 25 basis points to three per cent on Wednesday, as the Bank of Canada governor warned there was little he could do to negate the economic impact of U.S. tariffs imposed on Canadian imports.

“Monetary policy cannot offset the economic consequences of a protracted trade conflict,” Bank of Canada governor Tiff Macklem told reporters

“The reality is the economy is going to work less efficiently. Canada’s going to produce less. It’s going to earn less. Monetary policy can’t change that.”

WATCH | Bank of Canada governor says trade fight with U.S. would be ‘complex shock’: Bank of Canada governor Tiff Macklem says a protracted trade conflict with the U.S. would be a ‘complex shock’ for monetary policy, as the country would face both weaker growth and higher inflation.

U.S. President Donald Trump has threatened to impose a 25 per cent tariff on all Canadian …