Bank of Canada Likely to 'Separate the Data from Emotions' on Trade

Dow Jones
09/01

0847 ET - Canada's economy looks to be on more solid footing, and that will give the Bank of Canada little reason to panic about escalating US-Canada trade tensions, says Tu Nguyen, economist at RSM Canada. "It is crucial to separate the data from emotions," she tells WSJ, noting both spending and the household savings rate climbed in 2Q. The 50% tariffs the US has imposed on certain Canadian goods, totaling 5% of all US-bound exports, will be "painful in specific sectors, but manageable from the central bank's standpoint." Nguyen anticipates a BOC hike in 1Q, although acknowledging the call is subject to change due to US-Canada trade ties and energy prices.

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