13 March | Other

Bank of Canada cuts rates due to negative impact of US trade policy on country's economy

Bank of Canada cuts rates due to negative impact of US trade policy on country's economy

On Wednesday, the Bank of Canada cut its interest rate by 25 basis points to 2.75%. Representatives of the regulator expressed concern about increased inflationary pressures and slowing economic growth in the country, which were caused by the ambiguous trade policy of US President Donald Trump, according to Reuters.

As reported by the agency, the Canadian central bank is going to take a cautious approach to any further changes in monetary policy. The Bank of Canada's governor, Tiff Macklem, indicated that officials are now committed to ensuring price stability in the nation. However, he did not share any forecasts about the regulator's future strategies.

The tariffs imposed by the US administration on imports of Canadian steel and aluminum products have alarmed business representatives and shaken consumer confidence. Nevertheless, the Canadian authorities intend to impose retaliatory tariffs against the United States amounting to C$28.9 billion (over US$20 billion), Reuters noted.

According to officials from the Bank of Canada, trade tensions will disrupt the recovery of the country's labor market. In addition, the regulator anticipates that inflation will be about 2.5% in March, up to 1.9% in January.

Anton Volkov MarketCheese
Period: 21.03.2025 Expectation: 1400 pips
GBPUSD is poised for a pullback towards the trend line
Yesterday at 11:02 AM 71
AntonVolkov
AntonVolkov

Listed among the best MarketCheese authors
2nd in the segment "Metals"
Period: 26.03.2025 Expectation: 670 pips
Brent prices may rebound amid trade instability
Yesterday at 09:54 AM 62
Alexandra_Belova
Alexandra_Belova

Listed among the best MarketCheese authors
1st in the segments "Currencies", "Crypto" and "Oil and gas"
Period: 31.12.2025 Expectation: 1000 pips
Buying Brent in case of price reduction to $60–65 per barrel
Yesterday at 08:48 AM 35
Period: 21.03.2025 Expectation: 544 pips
AUDCAD may rise to 0.91242 due to worsening situation in Canada
Yesterday at 08:32 AM 21
Period: 18.03.2025 Expectation: 2640 pips
Buying USDJPY within descending channel targets of 150.10
13 March 2025 99
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segments "Indices" and "Metals"
2nd in the segments "Currencies" and "Oil and gas"
Period: 20.03.2025 Expectation: 494 pips
Gas prices fall amid warm weather forecasts
13 March 2025 48
Go to forecasts