The Bank of Canada has cut its overnight lending rate by 25 basis points to 2.75 per cent, it announced on Wednesday, as an ongoing trade war with the U.S. begins to strain the Canadian economy.

The Bank of Canada (BoC) made another 0.25 per cent cut to its key interest rate on March 12, bringing it to 2.75 per cent.

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.