The Bank of Canada lowered interest rates by 25 basis points to 2.25 per cent on Wednesday.

The central bank said it made the cut amid weakness in the Canadian economy and with inflation expected to stay close to the bank's two per cent target.

"The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation," said the release.

Economists were largely anticipating a cut. Governor Tiff Macklem and senior deputy governor Carolyn Rogers are expected to speak during a news conference at 10:30 a.m. ET.

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