Another interest rate cut amid tariff uncertainty

The Bank of Canada has announced yet another interest rate cut. This time, a 25-basis-point reduction that brings the policy interest rate to 3%. Scotiabank’s Chief Economist Jean-François Perrault returns to break down the announcement, explain how things like potential tariffs and other political uncertainties may weigh into future decisions and much more. 

For an up-to-date breakdown of the Bank of Canada’s key interest rate and its change over time alongside inflation numbers, visit our interest rate page.   

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures 

Key moments this episode: 

1:13 - JF's key takeaways from the Bank of Canada's decision, in two buckets 

2:52 - Was an interest rate decision the right call? 

3:45 - JF's view on how potential tariffs factored into the central bank's decision 

4:57 - The Bank of Canada's outlook for the Canadian economy (without tariffs) 

6:17 - The Bank of Canada's view on the potential impact of tariffs 

8:21 - What does JF expect in terms of future Bank of Canada interest rate decisions this year? 

9:16 - Is there a risk that interest rates could go back up? 

11:44 - What does all of this mean for Canadians who are renewing their mortgages or looking to buy a home? 

13:36 - What about businesses and consumers? 

15:30 - What are the main takeaways for Canadians?