The Bank of the Canadian Governing Council felt that a trade conflict with the US would constantly reduce the level of domestic GDP, the minutes of a meeting of political decisions showed on Wednesday.
The central bank reduced its key policy rate on EMAZ 29 January, but the risks of the economy must mention that Donald Trump has a threat to imposing a rate by Donald Trump. All Canadian imports.
Trump agreed last week to kill these rates in almost every import of goods. But on Sunday, he said he would set a 25% rate of 25% of all imports of steel and aluminum.
“It was clear that a commercial conflict would lead to a decline in economic activity,” minutes said.
“Members of the Governing Council also stated that harmful effects on GDP will be permanent and GDP growth would be reduced until it is adapted to the Canadian economic fare.”
Fares threat Cloud expectations
Canada exports 75% of all its goods and services to the United States, has clearly been avenged, said the bank could have greater inflation.
Consumer prices in Canada has been in the middle of the central bank of the bank for almost six months, but the economy is slower, making rates quickly by making cuts.
The decision to cut rates affected 25 points under the influence of fares and the influence of rates, as well as the desire to protect growth, said minutes.
Last month BOC said the constant threat of tariffs was clinging to his forecasts.
“Members admitted that it was impossible to predict what would happen to US trade,” summaries said.
The six members of the March members will also reduce a commercial conflict that would reduce Canada’s revenue, it would interrupt the supply chain, taking inflation and weaken the Canadian dollar.
Anecdotal evidence showed that some Canadian businesses were already evaluating that it was moved to the US, and a fare war encourage capital flight and damage Canada’s competitiveness.
The Council will continue to control the impact on the economy in real time, paying more attention to supply chains and links between sectors.
2025-02-12 19:46:00
