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THE Bank of Canada should announce whether it will reduce interest rates on Wednesday as a climbing of the trade war is looming on Canadian and American savings.

US President Donald Trump intensified his trade war against Canada on Tuesday, threatening to double steel and aluminum prices from 25% to 50%.

They should come into force on Wednesday, the same day as the rate decision.

While inflation in Canada has been less than two percent and the unemployment rate of Canada has been stable, the threat of prices is expected to shed light on the Bank of Canada’s decision.

In January, the central bank reduced its reference interest rate by 25 base points, bringing the policy rate to 3.0%. Economists expect a further drop in rates on Wednesday.

2:26
Trump says he will be double steel, aluminum rates in Canada in response to electricity tax

“Bank’s work is to keep an eye further on the horizon than a month or two. He cannot reopen a closed factory with a few rate drops, but he can support domestic demand as compensation, “said CIBC economist on Monday, Avery Shenfeld.

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Shenfeld added: “Another quarter -point cup next week could only be a chicken soup for the soul of the economy, but as they say, even if it can’t help, it couldn’t hurt.”

You Nguyen, economist at RSM Canada, said: “Canada Bank should lower its 25 -point interest rate to the announcement.”

The deputy chief economist of the Royal Bank of Canada, Nathan Janzen, said that without prices, the Bank of Canada would have reduced rates. However, the prices modify the equation.

“We expect the Banque de Canada’s interest rate decision to be a very close call, because our basic cases forecasts assume that it will give up a rate drop for the first time since April 2024, but American trade risks could still easily include the chances of the seventh consecutive decline,” said Janzen in a note on Friday.

Last month, Governor of the Bank of Canada Tiff Macklem had warned that prices could considerably reach the economy of Canada.

“In the pandemic, we had a steep recession followed by a rapid resumption of the reopening of the economy,” said Macklem. “This time, if the prices are durable and wide, there will be no rebound.”

Macklem said that if Canada could recover part of the growth, damage would be durable.

“We can possibly find our current growth rate, but the level of production would be definitively lower. It’s more than a shock-it’s a structural change, “he said.

& Copy 2025 Global News, A Division of Corus Entertainment Inc.

THE Bank of Canada should announce whether it will reduce interest rates on Wednesday as a climbing of the trade war is looming on Canadian and American savings.

US President Donald Trump intensified his trade war against Canada on Tuesday, threatening to double steel and aluminum prices from 25% to 50%.

They should come into force on Wednesday, the same day as the rate decision.

While inflation in Canada has been less than two percent and the unemployment rate of Canada has been stable, the threat of prices is expected to shed light on the Bank of Canada’s decision.

In January, the central bank reduced its reference interest rate by 25 base points, bringing the policy rate to 3.0%. Economists expect a further drop in rates on Wednesday.

2:26
Trump says he will be double steel, aluminum rates in Canada in response to electricity tax

“Bank’s work is to keep an eye further on the horizon than a month or two. He cannot reopen a closed factory with a few rate drops, but he can support domestic demand as compensation, “said CIBC economist on Monday, Avery Shenfeld.

Get daily national news

Get the best news of the day, the titles of political, economic and current affairs, delivered in your reception box once a day.

Shenfeld added: “Another quarter -point cup next week could only be a chicken soup for the soul of the economy, but as they say, even if it can’t help, it couldn’t hurt.”

You Nguyen, economist at RSM Canada, said: “Canada Bank should lower its 25 -point interest rate to the announcement.”

The deputy chief economist of the Royal Bank of Canada, Nathan Janzen, said that without prices, the Bank of Canada would have reduced rates. However, the prices modify the equation.

“We expect the Banque de Canada’s interest rate decision to be a very close call, because our basic cases forecasts assume that it will give up a rate drop for the first time since April 2024, but American trade risks could still easily include the chances of the seventh consecutive decline,” said Janzen in a note on Friday.

Last month, Governor of the Bank of Canada Tiff Macklem had warned that prices could considerably reach the economy of Canada.

“In the pandemic, we had a steep recession followed by a rapid resumption of the reopening of the economy,” said Macklem. “This time, if the prices are durable and wide, there will be no rebound.”

Macklem said that if Canada could recover part of the growth, damage would be durable.

“We can possibly find our current growth rate, but the level of production would be definitively lower. It’s more than a shock-it’s a structural change, “he said.

& Copy 2025 Global News, A Division of Corus Entertainment Inc.

THE Bank of Canada should announce whether it will reduce interest rates on Wednesday as a climbing of the trade war is looming on Canadian and American savings.

US President Donald Trump intensified his trade war against Canada on Tuesday, threatening to double steel and aluminum prices from 25% to 50%.

They should come into force on Wednesday, the same day as the rate decision.

While inflation in Canada has been less than two percent and the unemployment rate of Canada has been stable, the threat of prices is expected to shed light on the Bank of Canada’s decision.

In January, the central bank reduced its reference interest rate by 25 base points, bringing the policy rate to 3.0%. Economists expect a further drop in rates on Wednesday.

2:26
Trump says he will be double steel, aluminum rates in Canada in response to electricity tax

“Bank’s work is to keep an eye further on the horizon than a month or two. He cannot reopen a closed factory with a few rate drops, but he can support domestic demand as compensation, “said CIBC economist on Monday, Avery Shenfeld.

Get daily national news

Get the best news of the day, the titles of political, economic and current affairs, delivered in your reception box once a day.

Shenfeld added: “Another quarter -point cup next week could only be a chicken soup for the soul of the economy, but as they say, even if it can’t help, it couldn’t hurt.”

You Nguyen, economist at RSM Canada, said: “Canada Bank should lower its 25 -point interest rate to the announcement.”

The deputy chief economist of the Royal Bank of Canada, Nathan Janzen, said that without prices, the Bank of Canada would have reduced rates. However, the prices modify the equation.

“We expect the Banque de Canada’s interest rate decision to be a very close call, because our basic cases forecasts assume that it will give up a rate drop for the first time since April 2024, but American trade risks could still easily include the chances of the seventh consecutive decline,” said Janzen in a note on Friday.

Last month, Governor of the Bank of Canada Tiff Macklem had warned that prices could considerably reach the economy of Canada.

“In the pandemic, we had a steep recession followed by a rapid resumption of the reopening of the economy,” said Macklem. “This time, if the prices are durable and wide, there will be no rebound.”

Macklem said that if Canada could recover part of the growth, damage would be durable.

“We can possibly find our current growth rate, but the level of production would be definitively lower. It’s more than a shock-it’s a structural change, “he said.

& Copy 2025 Global News, A Division of Corus Entertainment Inc.