Bank of Canada set to hold rates as strong growth collides with trade risks
Economists say trade-war uncertainty and inflation pressures leave little case for a move, with major banks and a policy council expecting no change.
- On Wednesday, the Bank of Canada is widely expected to hold its key interest rate at 2.25 percent for a seventh straight pause as trade tensions cloud the economic outlook.
- Governor Tiff Macklem's announcement comes amid a re-escalating trade conflict, with new U.S. tariffs and Ottawa's planned counter-measures creating economic volatility that complicates the policy outlook.
- Market pricing put the odds of a hold at 94 percent Monday morning, while forecasting teams at RBC Economics and TD Economics project no change through year-end.
- Canada's broad counter-tariffs, covering roughly $30 billion in U.S. imports, take effect September 8, with economists warning the measures could add a nearly $4 billion hit to Canadian households.
- U.S. President Donald Trump has threatened steeper levies on autos beginning January 1, 2027, further complicating the central bank's path as trade uncertainty extends beyond year-end.
26 Articles
26 Articles
The Bank of Canada is likely to adopt the status quo between rising inflation and a sluggish economy.
Bank of Canada set to hold interest rates for seventh consecutive meeting
The Bank of Canada (BoC) is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. This would be the seventh consecutive gathering with the central bank sitting on the fence. The BoC left its policy rate unchanged at 2.25% in July, as widely anticipated. The statement and Governor Tiff Macklem said persistent […] The post Bank of Canada set to hold interest rates for seventh consecutive meeting appeared first on The New York Le…
Bank of Canada set to hold rates as strong growth collides with trade risks
The Bank of Canada is widely expected to keep its key policy rate unchanged at 2.25% on Wednesday as recent strong economic growth gives it room to wait while a renewed trade war with the United States clouds the outlook.
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