The Bank of Canada on Wednesday further cut its interest rate by 25 basis points, bringing the country’s monetary policy rate down to 3.0 percent.

Tiff Macklem, the Bank of Canada governor, speaking on the rate cut, said the move was due to uncertainty in the country’s economy.

“There’s a lot of uncertainty out there, and it just didn’t seem useful to provide guidance,” he said on Wednesday.

This comes as United States President Donald Trump has maintained his stance to impose a 25 percent tariff on goods coming from Canada and Mexico from February 1, 2025.

Reacting, Macklem said a potential trade conflict by US tariffs on Canadian experts poses a major uncertainty.

“The potential for a trade conflict triggered by new U.S. tariffs on Canadian exports is a major uncertainty. This could be very disruptive to the Canadian economy and is clouding the economic outlook,” he said.

Meanwhile, the latest interest cut by Canada is the central bank’s sixth cut in a row and was widely expected by markets and most economists.

Reacting, BMO chief economist, Doug Porter said in a note to clients on Wednesday that the quarter-point drop solidifies the Bank of Canada’s position as the “most aggressive cutter in the world.”

Meanwhile, the Central Bank of Nigeria has repeatedly held its tightening stance on interest rates.

In November, 2024, CBN further raised Nigeria’s interest rate by 25 basis points to 27.50 percent.

Nigeria is expected to hold its first Monetary Policy Committee in 2025 in the coming weeks.