The Bank of Canada has announced a reduction in interest rates to 2.5%, signaling its readiness to make further cuts if economic risks increase. This move is significant as it aims to stimulate growth and support the economy amid ongoing uncertainties. Lower rates can encourage borrowing and spending, which is crucial for recovery, especially in the current financial climate.

The Bank of Canada has announced a 25 basis point cut to its benchmark interest rate, a move that is expected to stimulate economic growth and provide relief to borrowers. This decision comes as the central bank aims to support the economy amid ongoing challenges, making it cheaper for individuals and businesses to borrow money. Lower interest rates can lead to increased spending and investment, which is crucial for recovery. This change is significant as it reflects the bank's commitment to fostering a stable economic environment.