The Bank of Canada has forecasted a reduction in Canadian GDP growth due to ongoing tariff threats, as detailed in the latest minutes from the governing council. The uncertainty surrounding these U.S. tariffs has led to a decrease in business confidence and investment plans, according to Bank of Canada officials. In response to this economic uncertainty, the central bank cut interest rates last month. Additionally, Canada's financial regulator, the Office of the Superintendent of Financial Institutions (OSFI), has suspended the implementation of Basel III capital increase rules. This decision was influenced by the economic uncertainty caused by potential U.S. tariffs and the slower adoption of these rules in other countries. OSFI had previously delayed the implementation of these rules by a year and has now put a long-term pause on changes to how banks calculate certain lending risks, aligning with delays in other countries including the U.S.