By Rosalind Russell – The Bank of Canada is keeping its key interest rate at 2.75 per cent.
Officials say the major shift in direction of U-S trade policy… along with the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth and raised inflation expectations.
Instead of projecting GDP growth and inflation in Canada and around the world, the bank says our economic growth may weaken temporarily and see inflation stay around the two per cent target.
Another scenario sees a lasting trade war cause Canada’s economy to fall into recession this year, and inflation to rise above three per cent the next.
Officials say with other trade policy scenarios possible, there’s an ‘ unusual degree’ of uncertainty about the economic outcomes since the magnitude and speed of the shift in US trade policy are unprecedented.
Photo: Vista Radio
Submit News Tip
