Bank of Canada may 'Go Lighter' on Rate Cuts on Carney Election
#bankofcanada #interestrates #canadianeconomy The Bank of Canada may ease up on rate cuts following a Liberal minority win and plans for increased deficit spending—according to several economists reacting to Tuesday’s election. Economists like Tony Stillo and David Rosenberg argue that aggressive fiscal stimulus could reduce pressure on the central bank. However, historical trends show that deficit spending often goes hand-in-hand with rate cuts. As projections for a 2% GDP deficit raise concerns, analysts like Derek Holt question the government's assumptions. With potential tariff fallout and inflation uncertainty, the Bank of Canada faces a complex path forward. Links: Carney will buffer coming recession: Oxford Economics: https://www.youtube.com/watch?v=n0aZudFRJSU Posthaste: Bank of Canada might go lighter on rate cuts with Liberals in power: https://financialpost.com/news/bank-of-canada-interest-rate-cuts-liberals?tbref=hp Liberal platform promises $130B in new measures over 4 years, adding $225B to federal debt: https://www.cbc.ca/news/politics/liberal-costed-platform-1.7514272 Carney will buffer coming recession: Oxford Economics: https://financialpost.com/news/carney-will-buffer-recession-oxford-economics Carney platform promises $130B in new spending, deficits until 2029: https://www.ctvnews.ca/federal-election-2025/article/carney-platform-promises-130b-in-new-spending-deficits-until-2029/ General Government Net Lending/Borrowing for Canada: https://fred.stlouisfed.org/series/CANGGXCNLGDP Canadians give Liberals 4th mandate as Carney leads party to minority win: https://www.ctvnews.ca/politics/article/canadians-give-liberals-4th-mandate-as-carney-leads-party-to-minority-win/ Liberals' deal with NDP will keep Trudeau minority in power for 3 more years: https://www.ctvnews.ca/politics/article/liberals-deal-with-ndp-will-keep-trudeau-minority-in-power-for-3-more-years/ Nothing 'off the table' as NDP calls on feds to provide $2-billion infusion for child care: https://www.nationalobserver.com/2020/08/22/news/nothing-table-ndp-calls-feds-provide-2-billion-infusion-child-care?utm_source=chatgpt.com Scotiabank economist predicts eight rate hikes in next two years: https://www.mpamag.com/ca/mortgage-industry/market-updates/scotiabank-economist-predicts-eight-rate-hikes-in-next-two-years/315378 Daily Points: https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.daily-publications.daily-points.daily-points.capital-markets.2025-issues.april-23-2025.html DAILY POINTS: https://www.scotiabank.com/content/dam/scotiabank/sub-brands/scotiabank-economics/english/documents/daily-points/dailypoints20250422.pdf Markets plunge worldwide for a second day straight following China's tariff retaliation: https://www.cbc.ca/news/business/stock-market-falls-1.7501962 Bank of Canada governor: Trump’s tariffs creating once-in-a-century economic shock: https://www.politico.com/news/2025/04/16/canada-economic-shock-tariffs-00293514 Canada's economy shrank 0.2% in February, but signs point to growth in March: StatsCan: https://www.cbc.ca/news/business/canada-gdp-february-1.7522455 Trump eases tariffs on imported auto parts through executive order: https://www.washingtonpost.com/business/2025/04/29/trump-auto-tariffs-cars-white-house-trade-prices/ Former BoE, BoC Governor Carney: UK crisis shows risk of policies at cross purposes: https://www.reuters.com/world/uk/former-boe-boc-governor-carney-uk-crisis-shows-risk-policies-cross-purposes-2022-10-20/?utm_source=chatgpt.com Trump fans praise tariffs, slam Canada at Michigan MAGA rally: https://www.cbc.ca/player/play/video/9.6742552 Posthaste: Stressed-out bond markets forced Trump into tariff U-turn. Could it happen again?: https://financialpost.com/news/bonds-stock-markets-trump-tariff-flip-flop Mark Mitchell – Mortgage Broker London Ontario 920 Commissioners road east London, Ontario N5Z 3J1 Phone: (519)860-2102 (Call or Text) MarkMitchell@LondonOntarioMortgages.ca Brokerage Lic: 10464 Broker Lic: M16001479 https://www.LondonOntarioMortgages.ca – Apply Online!! Youtube Channel: https://www.youtube.com/c/MarkMitchellMortgageBrokerLondonOntario Subscribe NOW for more Mortgage/Financial News/Videos. Follow me on Social Media: Instagram - https://www.instagram.com/mortgagebrokerlondonontario Facebook - https://www.facebook.com/londonontariomortgages Twitter - https://twitter.com/londonmortgage1/ LinkedIn - https://www.linkedin.com/in/mark-mitchell-london-s-mortgage-broker-197842123/ TikTok - https://www.tiktok.com/@mortgagebrokerlondon?lang=en Commentary on this Channel should not be considered financial advice.
