The Bank of Canada cut its benchmark interest rate by a quarter point as it warns trade uncertainty is already hurting the Canadian economy.

The Bank of Canada said Wednesday that it is lowering its key interest rate by 25 basis points (bps) to 2.75 per cent.

The rate decision is in line with the expectations of the majority of economists tracked by Bloomberg. It’s the central bank’s seventh consecutive rate cut dating back to June of last year.

Canada’s headline inflation rate ticked up in January to 1.9 per cent, just below the bank’s two per cent target.