A cut to the Bank of Canada’s key interest rate.

It’s down 25 basis points to 2.5 per cent.

The rate held steady at 2.75 per cent the last three decisions, but a trend of slowing economic growth contributed to the cut.

They add that exports fell by 27 per cent in the second quarter, as many in the first quarter were trying to get orders out ahead of U.S. tariffs.

The bank adds that with a weaker economy and less upside risk to inflation, the reduction was needed to better balance the risks.