Canada's central bank dropped its key interest rate to 2.25 per cent. Governor Tiff Macklem cited:
- trade uncertainty,
- U.S. tariffs
- inflation
have all weakened the Canadian economy.
Bloomberg report (gated) on an analyst assessment, Warren Lovely, managing director with National Bank Financial:
- “I think we’re lowering interest rates because the economy is under immense strain.”
- government needs to focus on productivity growth
- “We’ve really been kind of a hamster in a wheel in terms of generating more output per worker hour,”
