By Promit Mukherjee and David Ljunggren OTTAWA, March 12 (Reuters) - The Bank of Canada on Wednesday trimmed its key policy rate by 25 basis points to 2.75% and warned of "a new crisis" as it tried to prepare the economy for the damage that President Donald Trump's tariffs could wreak.

The Bank of Canada confronts a challenging landscape as it navigates monetary policy amid persistent inflation and a recovering economy. The central bank is signaling potential interest rate reductions that are beginning to ripple through the financial system.

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.