INSUBCONTINENT EXCLUSIVE:
The Bank of Canada reduced its key interest rate by 25 basis points to 2.75% on March 12, marking its seventh consecutive rate cut
bank acted decisively after President Donald Trump imposed 25% tariffs on Canadian exports and 10% on energy products on March 4
Canada quickly retaliated with counter-tariffs of 25% on $30 billion worth of American goods, set to expand to $155 billion in three
Business investments stall as companies postpone or cancel expansion plans
Consumer confidence has dropped sharply while surveys reveal growing inflation expectations due to tariff concerns.The Bank of Canada
growth and rising prices, complicating future rate decisions.Bank of Canada Cuts Rates to 2.75% as Trump Tariffs Bite Economy
(Photo Internet reproduction)Economic Forecasts Amidst Ongoing TariffsEconomists project dire outcomes if tariffs persist
Frances Donald of RBC noted GDP growth could halt completely in 2025 and contract by 2% in 2026
Unemployment might exceed 8% under sustained trade restrictions.The cross-border economic relationship hangs in the balance, with
approximately $2.5 billion in goods and services traversing the border daily
The United States accounts for nearly 75% of all Canadian exports.Bank officials signaled caution about future rate movements
They must now balance downward pressures on inflation from weakening economic activity against upward pressures from increased costs.TD
continuing the easing cycle that began in June 2024.
