The Bank of Canada warns about the risks of inflation rebound and the impact of tariffs

Wallstreetcn
2025.06.18 15:55

Bank of Canada Governor Macklem: The central bank may see the direct impact of trade issues on CPI.

Excluding volatility, Canada's CPI is slightly stronger than expected.

The impact of tariff costs (sparked by U.S. President Trump) will depend on demand and a range of CPI expectations.

If tariff issues persist stubbornly, there may be a 75% cost pass-through in the next year and a half.

Many companies report having witnessed cost increases due to the trade war.

Employees in industries that are not sensitive to trade issues have already postponed consumption spending.

It is hoped that (central bank policymakers) will look past the noise and maintain low CPI through policy formulation.

Open trade with the U.S. is crucial for Canada's employment and economic growth.

The consensus on a 30-day deadline for trade issues between the two countries is "welcomed."

(The Trump tariffs provide) Canada with an opportunity to expand global service exports.

Expanding the market share of Canadian businesses will build resilience

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