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The Bank of Canada's interest rate decision highlights at a glance

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2025-04-16 14:04:01
< br > < span class = "section-news" > 1. Interest rate level: The Bank of Canada kept interest rates unchanged at 2.75%, stopping seven consecutive declines, with the intention of obtaining more relevant information about tariffs and their impact. < br > < span class = "section-news" > 2. Forward guidance: Before the outlook for tariffs becomes clear, forward guidance needs to be reduced, and be prepared to act "decisively" when new information becomes available. < br > < span class = "section-news" > 3. Tariff impact: If U.S. tariffs trigger a global trade war, Canada's inflation rate will climb and it will enter a deep economic recession. < br > < span class = "section-news" > 4. Significant changes: No regular quarterly economic forecasts have been released, instead forecasting based on scenarios of the path of U.S. trade policy. < br > < span class = "section-news" > 5. Tariff outlook one: Most tariffs were eliminated through negotiations, and Canadian and global economic growth weakened temporarily. Canadian inflation fell to 1.5% within a year, then returned to the 2% target. < br > < span class = "section-news" > 6. Tariff outlook two: Tariffs spark a protracted global trade war. Canada's economy is in a deep recession, with inflation surging above 3% in mid-2026, then back to 2%. < br > < span class = "section-news" > 7. Market impact: The US dollar against the Canadian dollar USD/CAD fell by 45 points in the short term, and the swap market shows that the probability of the Bank of Canada maintaining interest rates unchanged in June is 67%.
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