• Rate Cut: The Bank of Canada reduced its interest rate by 0.25% to 3.0%, marking its sixth consecutive cut.

• Trade War Concerns: The bank warned of economic disruptions if the U.S. imposes blanket tariffs on Canadian goods, potentially leading to a recession and higher inflation.

• Economic Impact: In a "severe" scenario, Canadian GDP could fall by 2.5% in the first year of tariffs, leading to a recession. Inflation could rise, especially on imports like produce.

• Uncertainty: The Bank of Canada has not included tariffs in its economic forecasts but emphasized the potential for significant disruptions if trade tensions escalate.

Future Outlook: The bank remains cautious, with a possibility of further rate cuts, depending on the evolving trade situation.