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Bank of Canada meeting minutes: Tariff threats impact confidence, forcing the central bank to decide on a rate cut in January.
Gelonghui, February 13 | The Bank of Canada released the meeting minutes of the rate cut decision on January 29: (The tariff threats issued by US President Trump have) impacted confidence, forcing the central bank to decide on a rate cut in January. The central bank expects that the rate cut will support growth and achieve a balance of inflation risks. The trade war may disrupt supply chains and fuel inflation. Tariffs could lead to a depreciation of the Canadian dollar in the future. The (US-Canada) trade conflict may weaken energy demand and Canada's (trade) revenue. Capital outflows could worsen Canada's competitiveness. If uncertainty persists in the long term, it will undermine Canada's business investment.