Bank Of Canada Holds Rates Steady As It Examines Tariff Fallout D306A25
Wall Street Journal3 days ago
Bank of Canada Pauses Rate Cuts Amid Trade War Uncertainty
Above: Tiff Macklem, Governor of the Bank of Canada, right, and Carolyn Rogers, Senior Deputy Governor of the Bank of Canada, during a news conference in Ottawa, Ontario, Canada, on Wednesday, April 16, 2025. Image copyright: James Park/Contributor/Bloomberg via Getty Images
The Spin
Liberal Party narrative
The central bank's decision is prudent, balancing inflation and growth amid unprecedented uncertainty from Trump's tariffs. With the Economic Policy Uncertainty index soaring to 1,542, consumer spending and business investment are paralyzed. Tariffs threaten a year-long recession, potentially slashing GDP and spiking inflation to 3%. By pausing, the Bank is wisely navigating Canada's terrifying purgatory, preserving flexibility for future action.
Conservative Party narrative
Macklem's claim of having had a strong economy until Trump's tariffs is a lie to mask decades of stagnation under Liberal rule. Zero growth, crippling debt, and a failing auto industry signal collapse, not resilience. Mark Carney, a World Economic Forum-aligned banker, still pushes Net Zero to enrich investment banks like BlackRock, selling Canada's resources while the working class suffers. The Bank hides this corruption, propping up a broken system.