Bank of Canada Doesn’t Expect Tariffs to Impact Consumer Price Index Right Away
The Bank of Canada expects that upcoming U.S. tariffs and Canadian counter-tariffs will have a limited immediate impact on the Consumer Price Index. Most targeted goods are intermediate inputs rather than consumer-facing products.
Why it matters
Provides clarity on how trade wars influence domestic inflation and cost-of-living metrics for citizens.
Bank of Canada Governor Tiff Macklem (CPAC)
The Bank of Canada says U.S. tariffs on Canadian goods and Canadian counter-tariffs set to come into effect next week will likely be seen in increased costs for consumers. The impact, however, may not be felt for some time.
The Bank of Canada is once again holding its key interest rate at 2.25 per cent.
Governor Tiff Macklem says most of the goods directly targeted in the escalating trade war are not included in the Consumer Price Index .
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