The Bank of Canada cut its interest rate by 25 basis points to three per cent Wednesday, warning that a potential trade war with the U.S. could stunt economic growth over the next few years. Bank of Canada governor Tiff Macklem noted in his opening remarks that while inflation has held near the bank’s two per cent target since August and household spending is picking up,

The Bank of Canada on Wednesday cut its benchmark rate for a sixth straight time, and warned of a significant shock to the economy from a U.S.-Canada trade conflict with tariffs of up to 25%.