BoC Minutes: Would have left rates unchanged if not for tariff uncertainty

The Bank of Canada's (BoC) latest Meeting Minutes showed the Canadian central bank may be much closer to freezing on interest rates than previously thought. According to the record of the latest rate call meeting by BoC policymakers, the BoC stretched for an eighth consecutive rate cut as a result of ongoing trade and tariff uncertainty from the US's Trump administration, all in an effort to try and bolster the Canadian economy one last time before US President Donald Trump's self-styled trade war begins to take full effect.

Key highlights

The governing council decided a 25 bps cut would provide some help to Canadians to manage the uncertainty related to tariffs.

The governing council would probably have left rates unchanged at 3% had there not been a tariff threat and increased uncertainty.

Ahead of Bank of Canada's March 12th rate announcement, The Governing Council was generally assigning less weight to downside risks to inflation.

Governing Council generally agreed that new data had shifted the balance, with somewhat less risk of lower inflation outcomes.

The Governing Council agreed it would not be appropriate to provide guidance on the future path for rates.

Other members felt threat of tariffs and uncertainty had changed the outlook enough to warrant a cut.

Governing Council agreed to proceed carefully with further changes to monetary policy.

Governing Council noted it could take time for these opposing effects to materialize.

Some governing council members suggested keeping rate unchanged until there was more clarity on the effects of tariffs.

Governing Council agreed to assess the balance between upward pressures on inflation from higher costs and downward pressures from weaker demand.