Bank of Canada to Highlight Upside, Downside Risks from Failed Trade Talks

Dow Jones
09/01

0835 ET - National Bank of Canada economist Ethan Currie says that when the Bank of Canada meets Wednesday to discuss interest rates, it will argue its policy rate, at 2.25%, remains appropriate amid uncertainty about the US-Iran conflict and escalating trade tensions between Ottawa and Washington. Currie tells WSJ he expects the BOC to highlight both the upside risks to inflation and the downside risks to growth stemming from the trade conflict. "Of course the downside risks have increased, and the BOC has said it may ease in response to tariffs-they'll continue to flag that as a possibility," Currie says. National Bank's forecast envisages BOC rate hikes starting in 1H of 2027, although Currie says that hinges on recent economic momentum holding steady and an easing of trade tensions.

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