Institutions: Tariff impacts are showing, the reasons for the Bank of Canada maintaining the interest rate are being questioned.

Golden Ten Data on June 5, institutional analysis pointed out that Canada’s dismal trade report in April seems to have weakened the reason for the Bank of Canada to keep the benchmark interest rate unchanged this week to a certain extent. The Bank of Canada previously said it kept its policy rate unchanged at 2.75%, partly due to a slowdown in the economy, but not a deterioration. Canada’s trade report for April showed that the country’s trade performance was subdued, with exports falling 10.8% to their lowest level in nearly two years, and the trade deficit widening to a record C$7.14 billion. Statistics Canada noted that the strongest monthly appreciation of the Canadian dollar since May 2021 drove a sharp decline in export data. In dollar terms, Canada’s exports fell 8.4% in April. Exports to the U.S. fell 15.7 percent, likely reflecting an acceleration in U.S. importers placing orders from Canadian suppliers in the first quarter to avoid tariffs.