Timing of Bank of Canada’s next statement gives it potential to tinge election
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OTTAWA — Canadians last heard the Bank of Canada’s take on the economy in the early days of summer — and the timing of its next update has the potential to tinge political debate during the federal election campaign.
Since the bank’s most-recent public comments in early July, there’s mounting evidence of a slowing global economy mostly due to the escalating U.S.-China trade war — including fresh Chinese tariffs Friday and new threats by U.S. President Donald Trump.
The Bank of Canada’s most-recent message underlined the resilience of the domestic economy, and it appeared in no rush to move its policy even as other central banks were poised to lower rates to respond to the already dimming international outlook.
Scotiabank chief economist Jean-Francois Perrault predicts the Bank of Canada will take out insurance against potential damage by cutting rates this fall — and perhaps as early as Sept. 4 — because external risks have intensified since July.
