The Globe and Mail reports in its Thursday edition that the Bank of Canada cut its benchmark interest rate on Wednesday by a quarter percentage point to 3 per cent, marking its sixth consecutive reduction. The Globe's Mark Rendell writes that this decision coincided with the end of a quantitative tightening effort aimed at reducing the bank's balance sheet. While inflation is under control and growth was expected to improve, concerns about potential U.S. tariffs pose a significant risk to the Canadian economy. After the rate announcement Bank of Canada Governor Tiff Macklem said: "A long-lasting and broad-based trade conflict would badly hurt economic activity in Canada. At the same time, the higher cost of imported goods will put direct upward pressure on inflation." Mr. Macklem noted that the threat of tariffs influenced the BOC's decision to cut interest rates again. Although central banks usually do not change policy based on unfulfilled political promises, he described the move as a risk management exercise. Mr. Macklem said, "The more we can get the economy on a solid footing before it faces new tariffs, the better." The BOC decided not to incorporate tariffs into its latest forecast, published Wednesday.