The Globe and Mail reports in its Thursday, June 5, edition that the Bank of Canada maintained its key interest rate at 2.75 per cent for the second consecutive time, noting the need to potentially lower borrowing costs due to ongoing U.S. tariffs and trade uncertainty impacting the Canadian economy. A triple-bylined item reports that the last month's inflation and economic growth data indicated that the effects of the U.S. trade war have been relatively limited so far. "The Canadian economy is softer but not sharply weaker. And we've seen some firmness in recent inflation data," Governor Tiff Macklem said. He said U.S. trade policy remains the "biggest headwind" facing Canada and that the trajectory of the economy, inflation and interest rates depends heavily on what happens with tariffs. The bank's seven-member governing council agreed to keep interest rates steady, but there were differing opinions on future rates. Some members foresee a need for further easing, while others are more concerned about rising price pressures. Mr. Macklem said members felt a policy rate reduction might be necessary if the economy weakens due to ongoing U.S. tariffs and uncertainty, while inflation pressures remain contained.