The Bank of Canada left its key policy rate unchanged at 2.25% on January 28, with uncertainty around the U.S. trade policy having increased since the December meeting.
Uncertainty around our forecast is heightened, and the range of possible outcomes is wider than usual. US trade policy remains unpredictable, and geopolitical risks are elevated. Bank of Canada.
This year is especially nerve racking for Canada’s policymakers, businesses and consumers alike because beyond rhetoric, the trilateral Canada-US-Mexico trade agreement has shielded much of Canada’s exports from outrageous tariffs.
But CUSMA deal is due for review this year
In its central economic scenario, the central bank assumes that tariffs and trade policies in place on January 23, 2026, persist. But in light of the uncertainty, it has provided four economic outcomes depend on how negotiations turn out.
Geopolitics have never impacted businesses and consumers so directly. Let’s talk about your public affairs.
