Wed Sep 17 18:10:00 UTC 2025: Okay, here’s a summarized news article based on the provided text:
**Bank of Canada Cuts Key Interest Rate Amid Global Economic Slowdown and Trade Uncertainty**
**OTTAWA** – The Bank of Canada has lowered its key overnight interest rate by 25 basis points to 2.5%, citing a weakening global economy and ongoing uncertainty surrounding trade. The decision, announced today, comes as Canada’s GDP declined by 1.5% in the second quarter, impacted by tariffs and trade disruptions.
“With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks,” the Bank said in a statement.
Global economic growth is showing signs of slowing after withstanding higher tariffs from the US, the Bank noted. Business investment is strong in the United States, but consumers remain cautious, and US employment has been slow. There is increased US inflation as businesses are passing on tariff costs.
Canada’s exports plummeted in the second quarter, reversing gains from earlier in the year. Employment has also declined, particularly in trade-sensitive sectors. While overall inflation remains near the Bank’s 2% target, underlying inflation is running around 2.5%.
The Bank acknowledges the disruptive effects of global trade shifts. Going forward, the Bank will carefully monitor exports as the face US tariffs and changing trade relationships. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval.
In addition to navigating current economic challenges, the Bank of Canada continues its focus on accessibility and reconciliation, while also overseeing retail payment service providers. The Bank is also in the design process for a new $20 bill featuring King Charles III. The next interest rate announcement is scheduled for October 29, 2025, with an accompanying Monetary Policy Report.
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