The Financial Post reports in its Thursday edition that the Bank of Canada cut its policy interest rate by 25 basis points to 3 per cent on Wednesday, while warning that the consequences of a U.S. trade war could be severe. The Post's Jordan Gowling writes that missing from the Bank of Canada's policy statement and the governor's opening remarks was any guidance on the future path of interest rates. "There is a lot of uncertainty out there and it just didn't seem very useful to provide guidance," Governor Tiff Macklem told reporters. David Rosenberg at Rosenberg Research said futures markets are pricing in just a 60-per-cent chance of another cut in March. TD Bank senior economist James Orlando said he remains hopeful that the tariffs are a negotiation tactic, but in the event of their application, the central bank would have to cut more in response. "This is a tail risk that remains front and centre in the mind of the Bank of Canada," he said in a note. "Our baseline forecasts remains that the Bank of Canada will cut rates to 2.25 per cent by year-end, but should 25 per cent tariffs come into play for more than a few months, we'd expect the central bank to cut more aggressively in order to cushion the economy."