9°C Vancouver

Apr 16, 2025 7:12 PM - Connect Newsroom

Bank of Canada Presents Two Economic Scenarios Amid Trade War Uncertainty

Share On
bank-of-canada-presents-two-economic-scenarios-amid-trade-war-uncertainty
Governor Tiff McCallum said that the bank’s monetary policy cannot cope with the uncertainty of the trade war.(Photo: The Canadian Press)

The Bank of Canada has presented two possible scenarios instead of precise economic forecasts for the first time since COVID, one of which predicts a deep recession and a possible increase in inflation in Canada.

The bank’s first scenario assumes that if tariffs are withdrawn through negotiations, the economy will only stagnate in the second quarter, after which it will gradually grow back. But the second scenario is that if the trade war lasts longer, the Canadian economy will go into recession for a year and inflation will rise to 3.5 per cent by mid-2026. Governor Tiff McCallum said that the bank’s monetary policy cannot cope with the uncertainty of the trade war.

McCallum also stated that a lot has happened since the Bank’s decision in March five weeks ago, and the future remains unclear. He noted that it is still unknown which tariffs will be imposed, whether they will be reduced or increased, and how long the situation will persist. He described the current environment as one of complete uncertainty.

Latest news

two-vancouver-men-charged-after-cfseu-bc-investigation-targets-fentanyl-trafficking-network
BCOct 24, 2025

Two Vancouver men charged after CFSEU-BC investigation targets fentanyl trafficking network

The Combined Forces Special Enforcement Unit of British Columbia says two Vancouver men are facing multiple drug trafficking charges after a months-long investigation that disrupted an organized network accused of distributing fentanyl and other illicit substances across the Lower Mainland. The investigation began in February 2024 after CFSEU-BC’s Anti-Trafficking Task Force identified a suspect believed to be supplying large amounts of fentanyl and other drugs through a coordinated network. On October 2, 2024, police executed search warrants at two homes in the region, seizing more than thr
man-found-not-criminally-responsible-in-2023-vancouver-chinatown-festival-stabbings
BCOct 24, 2025

Man found not criminally responsible in 2023 Vancouver Chinatown festival stabbings

A B.C. Supreme Court judge has ruled that a man who stabbed three people during a Vancouver Chinatown festival in 2023 is not criminally responsible due to a mental disorder. Justice Eric Gottardi delivered the decision Friday, saying the law does not convict people for acts committed while they are mentally ill. The ruling concerns 67-year-old Blair Donnelly, whose trial heard he believed he was acting under divine instruction when he carried out the attack last September. Court testimony showed Donnelly had asked the Holy Spirit for a sign not to proceed, but said he “wanted to obey God”
alberta-pays-95-million-to-settle-another-coal-policy-lawsuit-total-payouts-near-240-million
AlbertaOct 24, 2025

Alberta pays $95 million to settle another coal policy lawsuit, total payouts near $240 million

The Alberta government has agreed to pay $95 million to Evolve Power, resolving another lawsuit linked to the province’s reversal of its coal policy. The latest settlement brings total payouts to almost $240 million, following a $143 million agreement reached earlier this year with another mining company. According to a notice to shareholders, Evolve Power will return two coal leases to the province as part of the deal. The company said the agreement represents the best possible outcome and that its board will soon determine dividends for shareholders. Energy Minister Brian Jean’s office c
fraser-valley-hospital-begins-4-95m-mri-upgrade-to-improve-diagnostic-access
BCOct 24, 2025

Fraser Valley hospital begins $4.95M MRI upgrade to improve diagnostic access

Patients across the Fraser Valley will soon benefit from faster and more accurate diagnostic imaging as Abbotsford Regional Hospital and Cancer Centre undergoes a $4.95 million upgrade to its MRI unit. The project aims to enhance imaging quality and reduce wait times for residents needing critical scans. During the construction period, a mobile MRI unit will remain on site to ensure uninterrupted service. The hospital’s existing MRI scanner, which has surpassed its expected lifespan, will be fully refurbished using its original magnet – the most energy-intensive component to produce – wh
statistics-canada-delays-trade-data-release-as-u-s-government-shutdown-halts-information-flow
CanadaOct 24, 2025

Statistics Canada delays trade data release as U.S. government shutdown halts information flow

Statistics Canada says it is postponing the release of Canada’s international trade figures due to a lack of data from the United States, where a government shutdown has disrupted operations at the U.S. Census Bureau. The federal agency said it normally depends on U.S. import data to calculate Canadian export volumes but has not received updated information since the shutdown began in early October over a budget standoff in Congress. As a result, trade statistics for September, originally scheduled for publication on November 4, will be delayed. Statistics Canada said it will not be able to

Related News