Institution: The Bank of Canada is expected to cut interest rates in April due to the risk of an economic recession.

On March 21, Jinshi Data reported that the Bank of Montreal broke the Consensus, believing that the Central Bank of Canada will lower its main Interest Rate by 25 basis points to 2.5% in April. In the latest interest rate forecast, the company expects the Central Bank of Canada’s policy rate to reach 2% this summer, citing the tightening of U.S. President Trump’s tariff policy. Due to accelerating inflation, the market generally believes that the Central Bank of Canada will pause rate cuts in April. Central Bank Governor Macklem reiterated the inflation risks posed by tariffs in a speech and added that the rise in prices in February “caught our attention.” The Bank of Montreal stated that although the CPI in March may remain high, it is expected to cool in April due to the Liberal government’s cancellation of the carbon tax before the election. The bank indicated that pausing interest rate actions in April is feasible, but leans towards a rate cut as the economy “yields to expected recession.”