The Bank of Canada is preparing for two possible economic scenarios as it navigates the uncertainty of a potential global tariff war: a temporary slowdown in Canadian economic activity or a prolonged downturn lasting up to a year. This uncertainty, driven by U.S. President Donald Trump’s trade policies, has led the central bank to release two distinct forecasts instead of a single projection. These scenarios were unveiled as the bank paused its easing campaign for the first time since it began cutting rates in June of the previous year. — new from Bloomberg
