Slower rate cuts and tariff threat: 2025 Canadian economic outlook [Video]

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All right, Canadian inflation has dipped below the target 2% level in November. But with plenty of headwinds facing the economy, what’s the outlook for 2025? Joining us now to discuss is Leslie Preston, Managing Director and Senior Economist at TD. Leslie, thanks very much for joining us.

My pleasure.

OK, so let’s start with the inflation report, which showed that headline CPI did dip below 2% in November. What are your key takeaways?

Yeah, certainly good news for consumers, who have dealt with very high inflation over the past couple of years. The good news, though, is dampened somewhat by the fact that we didn’t see any further progress on the Bank of Canada’s core measures that they use as a guide to headline inflation. Those were running 2.6%, 2.7% year-on-year in November, where they were in October. So the bank targets a range of 1% to 3%, with 2% being …