The Bank of Canada issued a relatively hawkish policy statement on Wednesday this week, which increased speculation that another interest rate hike was coming, possibly as soon as July. But within only 24 hours, the reported weakness in first-quarter GDP growth and the news that the US intends to add Canada to its list of countries subject to tariffs on steel and aluminium imports made the Bank’s haste to tighten look ill-conceived.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services