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.

Canada's main stock index opened higher on Tuesday, helped by technology shares, as investors assessed U.S. inflation data and awaited the Bank of Canada's key policy decision due later in the day.

A major cut to the Bank of Canada’s key interest comes as welcome news to realtors and those holding variable rate mortgages – but it also signals a growing sense of uncertainty about the broader Canadian economy.