Canada’s interest rate announcement comes in the clouds of uncertainty thanks to the U.S. commercial war on Wednesday.
Most economists expect the Central Bank to reduce another quarterly rate when I see how much the controversy is going on with Canada’s largest trading partner.
The Bank of Canada faces a difficult task: the inflation is to determine the money policy as soon as the signs of stubbornness, and the economy is steam, and the risks of a sharp decline are connected to the bench on the horizon.
“This is a very difficult position for the Bank of Canada,” he said.
US President Donald Trump, who are subject to the promises to apply sweeping tariffs on Canada on March 4, the exact essence of these tariffs has passed with a number of breaks and changes in days.
“Who knows what it can look like from day to day? It is almost everyone’s guess,” said Bartlett.
There will be harsh consequences in the case of a trade war stretching with the US economy
If the increase in inflation in the near future, the increase in inflation and recognition of these industries can quickly prolong the loss of work in heavy hit sectors.
Desjardins are waiting for a recession in the middle year if steep tariffs in Canada remain in place.
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This was a cry from the trajectory of the Canadian economy in 2025.
Last year, the last year, there are signatures that previous interest rates from the Canadian Bank were filtered through the economy. An updated Canadian consumer caused an increase in retail activities to close 2024, and a large disruption ban, in 2025, will be a recovery year.
Bartlettin suspends the Central Bank’s central bank to reduce the Canadian interest rate bank to three-thirds and wait for inflation and the economy in the coming months.
“But after March 4, we hit the tariff shock and all the bets mean … Bartlett for the Canadian Bank.
According to LSEG data and analysts, financial markets by Friday, until Friday were mainly reduced to the cash registers. Before the tariffs go forward, the markets were actually a father.
Bank of Canadian Governor Tiff Macklem, if February 21, if the tariffs recovered from the Covenian economy, it will not be a long-term and long-term leap.
Macklem continued to explain that the Central Bank was based on both weak growth and increasing inflation. According to him, the Central Bank plans to use the policy rate to help the economy, which affects the economy, which has a good increase in inflation expectations to two percent target.
Andrew Grantham, the CIBC capital markets, said that on Friday, “he could not resolve the tariff issue” by reducing the ratio of “cannot resolve tariffs” in the note, but it can help the turbulence.
CIBC is waiting for the bank to cut the quarterpoint on Wednesday, reducing the benchmark rate by 2.75 percent, reduces more cuts to watch this year if the trade uncertainty continues.
Bartlett said that the Canadian Bank’s support for the Canadian economy is a little support for a 25-century point and waiting for a smaller in the coming weeks, he said.
He warned that the Central Bank could prevent the ratio of their policy, in part, according to Canadian dollars.
Loonie is also sensitive not only to be a hit from the commercial war, but also the differential between the policy ratios in Canada and the United States.
If the Canadian Bank reduces its policy degree very sharply, Loonie can cause a larger increase in inflation of food and other goods imported from the United States
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