The Globe and Mail reports in its Thursday, June 5, edition that the Bank of Canada kept its policy interest rate at 2.75 per cent, as expected. The Globe's guest columnists Jeremy Kronick and Steve Ambler write that they believe a cut was warranted due to rising unemployment, a weakening housing market and hidden weaknesses in the GDP data. These demand-side concerns could outweigh inflationary pressures from tariffs. Cutting the rate now could help prevent a recession, which is becoming increasingly likely. The columnists say they are not alone in their concerns about an economic downturn; major Canadian banks' economics departments share similar worries. Four of the six major banks predict at least one quarter of falling GDP this year, with three expecting two quarters. The stronger-than-expected GDP growth in the first quarter masks underlying weaknesses, primarily driven by exports due to U.S. importers anticipating tariffs. Consumer spending showed minimal growth, and gross fixed capital formation declined. After stronger-than-expected GDP growth and core inflation rising above 3 per cent in the first quarter of 2025, it was understandable for the BOC to refrain from lowering its policy rate.