A need to fuel faster growth and shield the economy from U.S. trade-policy uncertainty led senior Bank of Canada officials to agree on a quarter-point rate cut last month, according to minutes summarizing central bank deliberations.

Bank of Canada officials decided to cut its benchmark interest rate by 25 basis points to 3% last month to better balance inflation risks, and support the economy in light of U.S. President Donald Trump's tariff threat as "the adverse impact on the level of GDP would be permanent."

The potential for a long trade war with the United States, and the uncertainty it brings even if the threat isn’t realized, weighed heavily on the Bank of Canada’s governing council when it decided to cut interest rates last month.