{"id":27443,"date":"2025-04-17T11:53:18","date_gmt":"2025-04-17T11:53:18","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/27443\/"},"modified":"2025-04-17T11:53:18","modified_gmt":"2025-04-17T11:53:18","slug":"canada-is-staring-at-deep-depression-due-to-usa-tariffs-and-trade-war-predicts-countrys-central-bank","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/27443\/","title":{"rendered":"Canada is staring at deep depression due to USA tariffs and trade war, predicts country&#8217;s central bank"},"content":{"rendered":"<p><a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/m.economictimes.com\/topic\/bank-of-canada\" target=\"_blank\" rel=\"noopener\">Bank of Canada<\/a> on Wednesday painted a dire economic picture, including the worst-case scenario of a protracted trade war with the United States &#8212; Canada&#8217;s biggest trading partner &#8212; triggering a recession and sending prices soaring.<\/p>\n<p>Country&#8217;s Central Bank held its key lending rate at 2.75 per cent, pausing a stream of recent cuts due to shifting US trade policy and tariffs. It noted that after solid growth in late 2024 and inflation easing toward the bank&#8217;s 2.0 percent target, financial markets are in turmoil, oil prices have dropped, and the Canadian dollar has appreciated as a result of broad US dollar weakness.<\/p>\n<p>&#8220;The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations,&#8221; the central bank said in a statement.<br \/>Tariff announcements and uncertainty have pulled down consumer and business confidence, leading to lower consumption and business spending, along with a decline in employment and slower hiring, the bank said.<\/p>\n<p>In the short term, the bank said it expects prices to rise as a result of the trade conflict and supply disruptions.<\/p>\n<p><img decoding=\"async\" alt=\"ET logo\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/118783427.cms.png\" width=\"90%\"\/>Live Events<br \/>But it said it would &#8220;proceed carefully&#8221; and continue to assess &#8220;downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.&#8221;&#8221;Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war,&#8221; it added. &#8220;What it can and must do is maintain price stability for Canadians,&#8221; the Bank of Canada stated.FAQs<br \/><strong>Q1. What do we know about Canada&#8217;s lending rate?<\/strong><br \/>A1. Bank of Canada held its key lending rate at 2.75 per cent, pausing a stream of recent cuts due to shifting US trade policy and tariffs.<\/p>\n<p><strong>Q2. What has Bank of Canada stated?<\/strong><br \/>A2. Tariff announcements and uncertainty have pulled down consumer and business confidence, leading to lower consumption and business spending, along with a decline in employment and slower hiring, the Bank of Canada said.<\/p>\n","protected":false},"excerpt":{"rendered":"Bank of Canada on Wednesday painted a dire economic picture, including the worst-case scenario of a protracted trade&hellip;\n","protected":false},"author":2,"featured_media":27444,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[14477,16562,16563,6917,16564,49,978,659],"class_list":{"0":"post-27443","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-bank-of-canada","9":"tag-bank-of-canada-latest-news","10":"tag-canada-latest-news","11":"tag-canada-news","12":"tag-recession-news","13":"tag-united-states","14":"tag-us","15":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114353170340363070","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/27443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=27443"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/27443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/27444"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=27443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=27443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=27443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}