Bank of Canada cuts rates and ends quantitative tightening
Macklem says monetary policy cannot offset negative effects of tariffs
The Bank of Canada reduced its policy rate by 25 basis points to 3% today (January 29) and ended its quantitative tightening programme.
Governor Tiff Macklem said there was “no doubt” the threat of tariffs had weighed on the bank’s decision. He said, however, that monetary policy cannot fully offset the negative effects of tariffs.
A trade war would badly hurt economic activity in Canada, Macklem said. He added it will be a complex shock for monetary policy-makers to respond to because it will
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
European Central Bank makes 25bp cut
Lagarde “confident” EU central banks will not add crypto to their reserves
Brazil again raises rates by 100bp
BCB signals further rises amid persistently high inflation and lingering concerns over public finances
Riksbank makes second 25bp rate cut of 2025
“Signs of an economic rebound” prompt further easing of policy
Hungary tentatively holds rates
MNB also changes forward guidance as inflation picks up
Fed holds rates amid pressure from White House
Powell says he has had no contact with Trump since president said he would “demand” easing of policy
Sri Lanka holds rates amid persistent deflation
Central bank expects price falls to intensify owing to cuts in electricity tariffs
Pakistan delivers sixth consecutive rate cut
Decision taking benchmark rate to 12% means policy has been eased by 1,000bp since last June
Unexpected rate hikes push down commodity prices – research
The most traded commodities are more vulnerable to monetary policy shocks, BoE paper shows