Toronto – Arab Canada News

Economic reports indicated on Monday that the Bank of Canada has become more inclined to suspend its policy of lowering interest rates, following U.S. President Donald Trump's announcement of a temporary suspension of tariffs on certain imports, which has temporarily eased economic pressures globally.

Economists believe that easing trade tensions could reduce the need for the Bank of Canada to take additional stimulus actions at this time, especially with inflation continuing to be above target levels.

Andrew Kelvin, senior rates analyst at TD Securities, stated that Trump's move “provides some stability to the markets,” adding that the Bank of Canada may “postpone a potential cut in June, if economic indicators continue to improve.”

The Bank of Canada had kept interest rates unchanged in its last meetings, indicating that it is considering gradually lowering them if signs of economic slowdown persist.

This potential direction comes at a time when Canada is still facing pressures from rising living costs and slowing wage growth, amid cautious anticipation of the effects of any new trade escalation that may arise after the American easing period ends.