Strategist: The Trump administration will complicate the rate cut cycle of the Canadian Central Bank

On November 6, Jinshi Data reported that the Canadian Benchmark bond yields are rising in sync with the trend of US bonds, as the financial market bets that Trump will reapply inflation pressure. The upward trend in yields will complicate Canada’s Central Bank’s efforts to revive the economy and prevent inflation from slowing too quickly. So far, the Canadian Central Bank has been the most active in implementing loose policies among the central banks of the G7 countries this year. Karl Schamotta, Chief Market Strategist at forex company Corpay, said, ‘As import price risks begin to emerge, the Canadian Central Bank is likely to slow down its loose stance.’ Measures by the Trump administration that could exacerbate inflation include imposing a 10% tariff on all imported goods and significant tax cuts that could lead to an expanded deficit.