The Bank of Canada slashed its key policy rate by 50 basis points to 3.25% on Wednesday to help address slower growth, though Governor Tiff Macklem indicated that further cuts would be more gradual and said he does not expect a recession.

For the second time in a row, the Bank of Canada cut its main interest rate by a half-percentage point, saying lower rates are needed to address weaker-than-expected growth and a softening labor market.

Bank of Canada Governor Tiff Macklem also said for the first time that the possibility the new administration of US President-elect Donald Trump might impose tariffs

The Bank of Canada slashed its key policy rate by 50 basis points to 3.25% on Wednesday and indicated further cuts would be more gradual, in a shift from previous messaging that continuous easing was needed to support growth.

The Bank of Canada cut its key interest rate by 50bps for a second consecutive time in its December decision, as expected by markets. This is the fifth consecutive decrease since June and brings the rate to 3.

Canada's central bank on Wednesday lowered its key lending rate by 50 basis points to 3.25 percent, seeking to aid a slowing economy facing uncertainty following a tariff threat from US President-elect Donald Trump.

The Swiss National Bank cut its interest rate by 50 basis points on Thursday, its biggest reduction in almost 10 years as it sought to stay ahead of expected cuts by other central banks and cap the rise of the Swiss franc.