10 July 2019

The consequences of the uncertain international trade conditions have affected the Bank’s reviewed economic forecasts as well.

The BoC reduced its 2019 global growth forecast from 3.2% to 3% because of the growing trade tensions, particularly between the U.S. and China.

According to the central bank, China’s latest trade measures aimed at meat and canola products from Canada are expected to reduce exports by 0.2%. Such changes, also including tighter inspections on Canadian goods by China, have appeared amid a bilateral diplomatic dispute.

The Bank raised its 2019 economic growth forecast for Canada from 1.2% to 1.3%, while reduced from 2.1% to 1.9% for 2020.

Brian DePratto, senior economist for TD Economics, says the Bank’s decision coincides with TD’s forecast of no rate changes as the national economy is still rebounding.

The next Bank of Canada rate decision is scheduled for September 4.