The trade war will force the Bank of Canada to further cut interest rates

On March 11, the trade war between the United States and Canada prompted economists to predict that the Bank of Canada would lower its policy interest rate to 2% this year, almost as low as pre-pandemic levels. According to the median estimates from a survey of 12 economists by the institution, the Bank of Canada is expected to cut the rate by a full percentage point from the current 3% before October. Previously, they anticipated that the central bank would end the rate-cutting cycle at 2.25%, which is the terminal level currently expected by overnight swap traders. The latest forecasts from economists include expectations that central bank officials will lower rates by another 25 basis points at their next meeting on Wednesday. All economists surveyed indicated that Trump's trade policies had a significant impact on their interest rate forecasts for 2025 and 2026, affecting accuracy or increasing risks. Economists unanimously agree that the imminent threat is affecting Canadian business investment decisions. #美股大跌