Trade War Will Raise Inflation, Says Bank of Canada
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The Bank of Canada has reduced interest rates by 0.25 percentage points to 2.75%, highlighting the trade conflict with the US as a significant economic challenge. Governor Tiff Macklem suggests the trade war will negatively impact economic activity while simultaneously driving up prices and inflation.
March 18, 2025 | 11:30 am
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NEGATIVE IMPACT
The currency ETF may experience volatility due to the Bank of Canada's rate reduction and ongoing trade war concerns.
Rate cuts typically weaken a currency, and trade war tensions add additional downward pressure on the Canadian dollar.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80