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BoC to cut again as economy stares into tariff abyss

The recent upside surprises to GDP, employment and inflation are of little relevance given the toll that US tariffs could have on the economy. Even if those tariffs are soon rolled back, investment and consumption are likely to be weaker this year than the Bank of Canada anticipated and the economy will require more policy support. We therefore expect another 25bp cut from the Bank next week.

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