3 December 2019

Investors have been hoping the U.S. and China will avoid an escalation of trade tensions, which have weakened the global economic growth.

Washington and Beijing need to sign a “Phase 1” agreement introduced in October, which raised hopes for a reasonable outcome.

In Trump’s opinion, the deal may happen only if he wants it.

“I can do very well on a deal with China, if I want it,” he noted. “It’s not up to them, it’s up to if I want to make it. We’ll see what happens.”

Bank of Canada is closely monitoring trade tensions between US and China and relying heavily on the outcome in making their interest rate decision and planning future monetary policy.