Bank of Canada Exhausts Tools to Help Tariff-Battered Economy

OTTAWA—The Bank of Canada signaled it has emptied its toolbox to help an economy hurting from the trade row with the U.S.

Canada’s central bank cut its main interest rate on Wednesday, to 2.25%, and said the rate is “at about the right level” to keep inflation intact at its 2% target. It’s taking this approach even though its own economic outlook is bleak over the next two years.