03:02 PM EST, 02/12/2025 (MT Newswires) -- 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, The Canadian Press is reporting Wednesday.

The central bank released a summary of its deliberations on Wednesday. The document offers a glimpse into the council's discussions ahead of the Jan. 29 rate cut, when it lowered its policy rate by a quarter-percentage point to 3% -- its sixth straight cut.

It showed the governing council had a long discussion on the impact of prolonged trade uncertainty, considering survey data released last month showed some businesses were already considering shifting investments to the U.S.

"Members also agreed that the threat of tariffs had increased uncertainty, and this would weigh on business confidence and investment intentions, as well as consumer sentiment," the report reads.

"This also supported the case for a lower policy rate."

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