The Bank of Canada reduced the interest rate on the last year to 2.75 percent on Wednesday, as the US trade war in the United States begins to tense the Canadian economy.
Explaining the decision in the opening of the opening, Canada Governor Tiff Macklem began with inflation in two percent of the economy’s annual growth and inflation in the economy.
However, the uncertainty, which is still reassembled between the uncertainty, Canada and the United States, reassembled business expenses and hiring and consumer confidence. Specially, production facilities have lowered sales worldviews.
The Central Bank decided to reduce the ratio of “this background” as a quarter of a quarter decided to cut the ratio of a quarter in a quarter due to a quarter of an aroven to increase the increase in exports.
“If it is still very early to see that new tariffs are very early, our research has a great impact on the employment and consumption of our research on Canadian-US trade relations.” During a press conference on Wednesday.
Canadian Bank Governor Tiff Macklem, 2.75 percent of the bank’s 2.75 percent of the bank’s 2.75 percent of the trade conflict ‘economic activity can be increased.
This is the seventh consistent incision of the bank as it began to bring prices in June 2024.
“They will not need a very good economy in a very good way, so it will not need to be a well-worried and cutting a ratio, so it belongs to the Chief Economist in the CIBC, taking into account the potential shock of the Canadian economy.
RBC, Scotiabank, CIBC, TD Bank, BMO and National Bank lowered 25 main points from 3:50 to 3 PM rates.
‘We are now encountering a new crisis’
The bank’s domestic investigation shows that Canadian enterprises intend to replace the impact of tariffs. As macclem notes, the less expenditure of enterprises and consumers tends to put pressure on inflation. However, the rising costs can start it.
“We face a new crisis. The economic impact may be violent in the depending on the rank and term of new US tariffs. It is harmed.”
Macklem warned the bank’s Canadian economy could not protect the economy of tariffs from the financial effect of tariffs, instead, use interest rates to manage the potential wave of inflation.
The Bank of the Bank of Canada, the bank’s main percentage ratio of the bank, the Bank’s inflation awaits the effect of tariffs to change the inflation changes and supply chains, as well as internal consumption and rescue habits.
At the same time, the bank’s main inflation measures are largely more than two percent controlled by the price increase.
What inflation effects of inflation in Canada, Macklem, “Journalists, which will be widespread and unpredictable and unpredictability of the United States, said in S & A.
According to him, several factors can contribute to inflation. Poor Canadian Dollars create a problem with importers because the products they bring will be more expensive; The revenge tariffs by Canada will also add expenses; And the compositions are looking for new suppliers and new markets to continue themselves because the uncertainty itself adds expenses.
“Someone must pay for these expenses, and as a result, they will pass the consumer,” he said. “What can we do is to ensure that inflation is temporary.”
Avoiding word recession
As a correspondent pointed out, MACKLMAN has never said that some economists say that tariffs are likely to prevent growth.
As for whether there is an approach of a recession, the Assistant Governor Carolyn Rogers said that the bank was not the forecast. “All these things do not give good results for the growth, but we will see,” he said.
The next interest rate meeting of Canada will also issue a quarterly monetary policy to evaluate the outlook for the Canadian economy on April 16.
BMO Chief Economist Duglas Porter, future interest rate decisions will be directed mainly by traveling in the Trade War, although the bank is going down to any event.
“Our main assumption will face some serious tariffs for a long time in Canada and reduce the inflation in the end of the growth aspects of the growth of the trade war, the bank will keep the bank in light.”
In each of the next three sessions of the bank, a night loan expects to cut 25 main points that bring up to two hundred percent.
