Traders predict a Bank of Canada rate cut amid fears US tariffs could push Canada into a recession.

Traders are predicting an emergency rate cut by the Bank of Canada due to upcoming US tariffs, which could push Canada into a recession, reducing GDP by 2 to 4 percentage points. Canada's two-year bond yield is now 180 basis points lower than the US, the widest gap since 1997. BMO forecasts up to six rate cuts this year if tariffs persist, potentially lowering interest rates to 1.5%.

2 months ago
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