The Globe and Mail reports in its Thursday edition that on Wednesday, the Bank of Canada cut its policy rate by a quarter percentage point to 2.25 per cent. The Globe's guest columnists Jeremy Kronick and Steve Ambler write that this decision, influenced by Governor Tiff Macklem, comes amid mixed economic signals. Inflation rose to 2.4 per cent in September, exceeding the target, while core measures remain above 3 per cent. The economy added 60,000 jobs, all full-time, making a pause in rate cuts seem reasonable. However, at the recent International Monetary Fund and World Bank meetings, Mr. Macklem expressed doubt about the strength of the employment numbers and indicated that economic growth would be sluggish. The guest columnists say, looking ahead, it will be difficult to rule out the dreaded stagflation scenario -- weak economic growth and high inflation -- and the challenges it brings for monetary policy. Interest-rate policy mainly targets the demand side of the economy. The BOC must decide if demand-side effects, which reduce growth and inflation, outweigh supply-side effects, which also lower growth but raise inflation. A cut this time made sense as insurance for a weak economy. Going forward, it is less clear.