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2025-09-17 23:18:01
Inflation Risks Make the Bank of Canada Cautious About Further Rate Cuts: Joe Brusuelas of the tax and consulting firm RSM stated that the Bank of Canada's decision not to provide forward guidance after resuming rate cuts provides the central bank with some flexibility regarding the path of monetary policy. The economist stated that the Bank of Canada specifically mentioned the potential inflation risks posed by global protectionism and tariffs, demonstrating its caution regarding future trends and the potential path of interest rates. RSM expects Canada to cut interest rates at least once more, as a weakening labor market and the potential for inflation to fall back to or below the central bank's 2% target provide the necessary policy space for action.
