Unpacking the latest interest rate cut as tariff situation escalates

The Bank of Canada has announced it has cut its policy interest rate by 25 basis points, bringing it down to 2.75% amid looming threats and what the central bank called “pervasive uncertainty”. Scotiabank’s Chief Economist Jean-François Perrault returns to the podcast to help unpack the announcement, how the uncertainty alone may be impacting Canadians, the outlook for Canada’s economy, and much more.  

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures 

Key moments this episode: 

1:35 - JF’s main takeaway from the Bank of Canada’s decision to cut its policy rate 

2:27 - Did the central bank make the right decision? 

2:28 - Where are we at in terms of inflation in Canada?  

7:17 - Could the tariff measures implemented to date and the uncertainty alone push us into recession? 

10:02 - JF’s thoughts on rate cut decisions for the rest of the year 

11:07 - What are the chances of an interest rate increase at this point? 

11:53 - What JF has to say to Canadians who may be worried 

12:39 - JF’s main takeaways from the Bank of Canada’s interest rate decision