The Governor of the Bank of Canada, Tiff Macklem, said that the Central Bank projections Show us that the prices will probably put Canada in a recession.
The modeling of the BOC, based on a scenario in which the United States imposes permanent prices of 25% on each of its business partners and these nations react in kind, shows a probable reduction of 2 to 3% of growth during a war prolonged commercial.
“If growth will be 2%, if you take 2.5%, you have a negative number, so, yes, people call this a recession,” he said.
Macklem said that prices are a “Tax on Americans” and that “everything they matter about Canada become more expensive”.
Likewise, Canadian import prices will be higher, but the question will be whether the cost will be passed on to consumers or importers’ results.
“We are trying to show that it would have a very material and serious effect on economic activity,” he said.
