MNI: BOC Minutes - Tariff Effects May Be Slow To Emerge

Bank of Canada officials expressed caution about further interest-rate moves when they decided to lower them for a seventh consecutive meeting on March 12, according to minutes published Wednesday, saying it could take time to figure out whether U.S. tariffs will slow economic growth more than they boost inflation.

Governing Council members "noted it could take time for these opposing effects to materialize," the Summary of Deliberations showed. Providing forward guidance on interest rates didn't make sense and officials "agreed to proceed carefully with further changes to monetary policy."

The minutes broke little new ground beyond the original Bank of Canada decision, and since then President Donald Trump's shifting threats ahead of his plan for sweeping 25% tariffs on April 2 have become even more of a focus for investors. Some Bank officials argued for holding rates earlier this month until more information emerged. (See: MNI INTERVIEW: Canada Factories Suffer From US Tariff Threats)