The Bank of Canada today reduced its target for the overnight rate to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

The Bank of Canada trimmed its key policy rate by 25 basis points on Wednesday to 2.75% and raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty and President Donald Trump's tariffs.

The Bank of Canada cut interest rates by a quarter percentage point and called the trade battle with the US a “new crisis,” but pushed back on expectations that policymakers were on a predetermined cutting path.

Bank of Canada governor Tiff Macklem, who cut the bank's key interest rate on Wednesday to 2.75 per cent, says trade conflict with the U.S. can be expected to 'weigh on economic activity, while also increasing prices and inflation.

Prices will rise, the economy will suffer and the Bank of Canada can't lower interest rates enough to shield Canadians from the worst impacts of a prolonged trade war with the United States.