23 January 2018

“I consider the NAFTA negotiations to be the largest risks for the Canadian economy,” – Alexander noted.

“Look at all the Canadian provinces and you’ll see that they have larger trading volumes with the U.S. than with other provinces. That’s why it’s vital for Canada to keep the access to this market.”

“In case the NAFTA talks fail, the Bank of Canada will not only stop raising rates, it can return to cutting them again,” – he added.

“So in terms of interest rates, we have not several variants of outcomes, but only two. The BoC will probably raise the rate in 2018 from a domestic point of view, but if NAFTA falls, I believe we’ll see more cuts.”