1430 ET - The Bank of Canada should cut next week its policy rate by a quarter-point to 2.75%, given the elevated level of economic uncertainty due to the Trump administration's tariff threats, says a Toronto think tank's monetary-policy panel. C.D. Howe Institute says all 8 panelists--a mix of big-bank and academic economists--all agreed on a quarter-point reduction on March 12. The panel was evenly split, 4-4, on whether another quarter-point cut was required in April. The panelists say incoming economic data, like strong growth in 4Q GDP, doesn't reflect the reality on the ground. The panelists also fret about the risk of stagflation in Canada, the think tank says, as tariffs could push up prices and thwart growth. (paul.vieira@wsj.com, @paulvieira)
(END) Dow Jones Newswires
March 06, 2025 14:30 ET (19:30 GMT)
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