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.

The Bank of Canada cut interest rates by 25 basis points to 2.75 per cent — the seventh consecutive reduction — as it finds itself grappling with uncertainty created by United States President Donald Trump’s tariff onslaught.