Bank of Canada governor warns of tariff shock to inflation, economy |

The Bank of Canada cut its benchmark interest rate by a quarter point as it warns about the impact of the U.S. trade war on the Canadian economy. Governor Tiff Macklem warns that prices are expected to rise in the near term but the economy will also likely weaken, and the central bank is limited in what it can do to combat both forces at once. (March 12, 2025)