The Bank of Canada may face a difficult 2019 - ING
|According to ING analysts, the threat of further US tariffs on Canadian goods, for example on the auto industry, is still a risk for the Canadian economy.
Key quotes
"In a more extreme scenario, the anticipated slowdown in inflation during 2019 could easily be offset by any fresh retaliatory tariffs from Canada, pushing prices up."
"Further trade escalations would not only be a major risk to Canada’s economic growth prospects, but would also likely dampen sentiment, which so far has been fairly resilient. For the Bank of Canada, it is the risk to growth, rather than inflation, that is likely to drive future policy decisions."
"That said, the recent advance in Nafta talks shows that the negotiations are beginning to regain some momentum, which could potentially reduce uncertainty over coming months - although this is dependent on the ‘type’ of agreement that gets finalised ."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.