CAD: Waiting for the tariff impact – Commerzbank

Source Fxstreet

The Bank of Canada (BoC) decided yesterday to keep interest rates unchanged and stressed that it would wait to see the impact of the US tariffs. Like so many central banks, it noted in its statement that uncertainty is exceptionally high at the moment and that it is not possible to predict which tariffs will ultimately remain in place for an extended period of time, Commerzbank's FX analyst Michael Pfister notes.

The risks to the BoC are tilted to the downside

"The usual forecasts that would have accompanied the new monetary policy report were not published in this form. Instead, the BoC sees two possible scenarios for the future: one that involves a great deal of uncertainty, but in which the tariffs are ultimately averted through negotiations."

"In such a scenario, growth would be somewhat lower in the near term, but inflation would likely remain around the midpoint of the inflation target. And a scenario in which a full-blown trade war breaks out, inflation rises above 3% next year, and Canada falls into recession this year."

"It is difficult to say which scenario will ultimately prevail. In the optimistic scenario, the BoC should have no problem keeping rates at this level for an extended period. In the much more pessimistic scenario, we are likely to see several rate cuts this year. The risks to the BoC are therefore tilted to the downside. We would therefore remain cautious about pushing the CAD's recovery too far until the uncertainty has abated somewhat."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Solana (SOL) Finds Support — Rally May Be Ready to ResumeSolana started a fresh increase above the $175 zone. SOL price is now correcting gains and might find bids near the $172 support zone.
Author  NewsBTC
May 15, Thu
Solana started a fresh increase above the $175 zone. SOL price is now correcting gains and might find bids near the $172 support zone.
placeholder
Ethereum Price Holding Strong — Signs Point to a New Upside BreakoutEthereum price corrected gains and tested the $2,500 zone. ETH is now again rising and might soon aim for a move above the $2,600 zone.
Author  NewsBTC
Yesterday 03: 41
Ethereum price corrected gains and tested the $2,500 zone. ETH is now again rising and might soon aim for a move above the $2,600 zone.
Related Instrument
goTop
quote