The Bank of Canada said Wednesday that it is lowering its key interest rate by 25 basis points to 2.5 per cent.

The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labor

Inflation remains higher than ideal at 3.8 per cent, with food and drink costs particularly high. Higher inflation is a reason to keep interest rates up, as it can discourage businesses from investing in new projects or hiring - which in turn raises earnings and spending power.

The Bank of Canada reduced its key policy rate to a three-year low of 2.5% on Wednesday, the first cut in six months, and said it would be ready to cut again if risks to the economy increased in coming months.

EXCLUSIVE: Thursday's decision will be closely watched as it comes as yields on gilts have been rising and as the UK struggles to meet its self-imposed budget rules.

CheapInsurance.com reports inflation is reshaping financial habits by driving "revenge saving," mindful spending, and side hustles as Americans adapt to economic pressures.

Christopher Stroup, certified financial planner and owner of Silicon Beach Financial, explained key signs to consider switching banks in retirement.

(Reuters) -London's FTSE 100 index edged lower on Monday, dragged down by heavyweight AstraZeneca and a strong sterling, as investors braced for an action-packed week of central bank decisions, including from the Bank of England. The benchmark FTSE 100 was down 0.12% by 0917 GMT.