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Bank of Canada Slashes Growth Forecasts Amid Trade Concerns

10/30/2025

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Bank Lowers Growth

Bank of Canada lowers 2025 and 2026 growth forecasts to 1.2% and 1.1%, down from 1.8%.
The Bank attributes this decline to U.S. trade policies and weaker demand conditions.
Inflation is projected to average 2.0% in 2025, slightly lower than previously forecast.
Wall Street remains concerned about growth, especially consumer spending, ahead of the Federal Open Market Committee (FOMC)'s upcoming rate decision, with analysts expecting the Fed to hold.

Left

Fed Cuts Rates

The U.S. Federal Reserve cut its rate by 25 basis points to 3.75-4.00 percent, its second reduction this year.
The decision cites concerns about a slowing labor market and inflation, with the unemployment rate rising slightly but remaining low.
The ongoing government shutdown, now the second-longest in U.S. history, limits data.
Consumer confidence has fallen to a six-month low, with layoffs at Amazon and Paramount raising fears of job scarcity.

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Bank Lowers Growth

Bank of Canada lowers 2025 and 2026 growth forecasts to 1.2% and 1.1%, down from 1.8%.
The Bank attributes this decline to U.S. trade policies and weaker demand conditions.
Inflation is projected to average 2.0% in 2025, slightly lower than previously forecast.
Wall Street remains concerned about growth, especially consumer spending, ahead of the Federal Open Market Committee (FOMC)'s upcoming rate decision, with analysts expecting the Fed to hold.

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