As expected, the Bank of Canada (BoC) drops its rate by another 0.25% today—but it admits it can’t fix the impact of the trade war.

> Tone of the announcement: In their own words: “more-than-usual uncertainty.”
> Consumer confidence is plunging > business slowdown, investment cancellations.An
> Housing: Past rate cuts boosted activity, but shelter inflation persists.
> Jobs: Hiring had momentum, but trade tensions threaten recovery.
> BoC’s balancing act: A weaker economy pushes rates down, but inflation pressures push them up.

> Strongest words from the BoC:
“Monetary policy cannot offset the impacts of a trade war. What it can and must do is ensure that higher prices do not lead to ongoing inflation.”

>>> My read: They’re focused on keeping inflation in check—suggesting no hikes ahead, but further cuts remain on the table.

Next BoC meetings: April 16, June 4
US Fed: March 19 (expected hold), then May 7 > Widening rate gap = more challenges ahead.