Bank of Canada Minutes Flag Growth Risks from Tariffs, Weak Spending
The Bank of Canada’s July meeting minutes pointed to risks to growth including businesses failing to adapt to tariffs, weaker consumer spending resilience, and stalled housing markets in major cities.
According to the minutes from the Bank of Canada’s July 15 policy meeting, policymakers identified several downside risks to the economic outlook.
- Businesses may struggle to adjust to ongoing tariff pressures, potentially weighing on investment and activity.
- The resilience of consumer spending could weaken more than anticipated, especially if households become more cautious.
- Housing markets in major Canadian cities have stalled, adding a further drag on growth.
The central bank’s discussion underscores concerns about the durability of the domestic expansion amid trade frictions and a softening consumer backdrop.
Source: First Squawk