![People outside the Roots store on Robson and Burrard in downtown Vancouver on April 1, 2025. The company reported a Q4 loss of $21.7 million as it took a large non-cash impairment charge. [Isabella Falsetti/Globe and Mail]](/cdn-cgi/image/onerror=redirect,width=640,height=640,format=webp/https://storage.googleapis.com/uploads.mongoosehq.com/url/media/19343169/c556156baae6045ed51f824e7f4778437dbf4814e90793ed921cc700cabb0710)
Overview
- Economists forecast at least two more Bank of Canada rate cuts this year, despite an expected pause at 2.75% during the upcoming policy meeting.
- Growth projections for Canada have been revised downward to 1.2% in 2025 and 1.1% in 2026, reflecting the impact of U.S. tariffs and trade policy uncertainty.
- A Reuters poll shows a majority of economists view the risk of a Canadian recession in 2025 as high, citing a weakening labor market and declining business sentiment.
- Over 60% of surveyed economists describe the impact of U.S. tariffs on Canadian business sentiment as 'very negative,' with key sectors like autos and steel affected.
- The Bank of Canada has already implemented seven consecutive rate cuts since June 2024, totaling 225 basis points, as it seeks to counteract economic headwinds.