Inflation cooled in Canada last month, dropping to 2.3 per cent, leading to questions about whether or not another interest rate cut is in the offing when the Bank of Canada announces its policy decision this morning.

Financial advisor Larry Short of Short Financial, a branch of iA Private Wealth, says the continued uncertainty and damage caused by Donald Trump’s tariffs means an interest rate cut is likely.

“The tariffs threat has caused a tremendous amount of damage,” Short told the Tim Powers Show on VOCM. “It’s lowered expectations—people are pulling back, and when that happens, the economy slows. The silver lining in that, is that more than likely we’re going to get a rate cut…and further rate cuts more aggressively over the next number of months.”

The Bank of Canada will release the latest interest rate decision this morning around 11:15 NST.