Bank of Canada Cuts Rates to 2.25% as Tariffs Bite and Inflation Persists: What It Means for Forex Traders

The Bank of Canada (BOC) has officially lowered its policy rate to 2.25%, marking a 25 basis point cut as the economy faces pressure from steep US tariffs and slowing growth. While the move is designed to support the economy amid trade disruptions, it also signals that policymakers are balancing between stimulating growth and keeping inflation stable near their 2% target.v