The Globe and Mail reports in its Thursday edition that whether the Bank of Canada has entered an easing cycle is no longer in question. The Globe's guest columnists Jeremy Kronick and Steve Ambler write that the only question now is how far and how fast the BOC continues to cut rates. There are several upside risks to inflation in the near future which could cause the bank to pause its rate cuts. The columnists believe the BOC should not pause cutting rates. Overall CPI inflation throughout the last month was under 1 per cent, which is encouraging, but was above 3 per cent in both March and May, after having fallen below zero in the first month of this year. There are big upside risks to inflation stemming from geopolitics. The most notable is the possibility of a change in government in the United States. Tariffs by the U.S., and retaliatory tariffs imposed by Canada and/or other countries from which we import, would increase inflation. The BOC needs to carry on cutting as inflation subsides. Otherwise, in real terms, i.e. after adjusting for inflation, its monetary policy will become gradually more restrictive even if it leaves the overnight rate where it is. This would risk pushing the economy into a recession.