Bank of Canada reworks MPR to offer two different tariff scenarios ...Middle East

The Bank of Canada had previously signaled it would revise down its 2025 GDP forecasts, and indeed, in Scenario 1 (where most tariffs are eventually negotiated away), growth is projected at 1.6% for 2025, down from previous estimates at 1.8%. In the more severe Scenario 2 ("A long-lasting global trade war"), 2025 GDP growth could fall to just 0.8%.

2024: 1.5%2025: 1.6%2026: 1.4%2027: 1.7%

Scenario 2:

2024: 1.5%2025: 0.8%2026: -0.2%2027: 1.6%

CPI inflation:

2024: 2.4%2025: 1.8%2026: 2.0%2027: 2.1%

Scenario 2:

2024: 2.4%2025: 2.0%2026: 2.7%2027: 2.0%

The

This article was written by Adam Button at www.forexlive.com.

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