Uncertainty about both the rapidly changing U.S. trade policy and the impact it’s having on the Canadian economy dominated discussion by the Bank of Canada governing council in the lead-up to its interest rate hold earlier this month.
The decision to keep the benchmark rate at 2.75 percent came on the heels of U.S. President Donald Trump’s April 3 tariffs, which targeted a slew of countries and roiled markets.
The governing council led by governor Tiff Macklem ultimately opted to keep its powder dry, with some members arguing a rate cut could end up being premature if tariffs and counter-tariffs led to a rapid rise in inflation….