The Bank of Canada is set to publish its interest rate decision on Wednesday at 9:45 a.m. ET. U.S. President Donald Trump imposed 50% tariffs on a wide range of Canadian goods, and Canada responded with retaliatory tariffs affecting more than $20 billion in goods, effective September 8. The central bank maintained its benchmark rate at 2.25% for the sixth consecutive time, after a recent peak of 5%. The Canadian economy grew by 0.8% in the second quarter, while inflation accelerated to 3% year-on-year in July. Goldman Sachs forecasts a 0.3 percentage point headwind to Canadian GDP growth and a 0.3 percentage point boost to inflation as a result of the U.S. tariffs.
Source: Read the original article
