Tiff Macklem

OTTAWA—A need to fuel faster growth and shield the economy from U.S. trade-policy uncertainty led senior Bank of Canada officials to agree on a quarter-point rate cut last month, according to minutes summarizing central bank deliberations. Lower interest rates had helped boost both consumer demand and housing activity. A good chunk of the deliberations focused on the tariff threats the Canadian economy faced from the Trump administration. Central bank officials said there was a risk of capital fleeing Canada for the U.S. in the event tariffs are imposed and remain in place for an extended period. …The minutes indicate senior policymakers agreed that fiscal policy was better suited to help cushion the damage for affected sectors and workers from trade row. “Monetary policy cannot offset the long-term economic adjustment that permanent tariffs would cause,” according to the minutes. [to access the full story a WSJ subscription is required]