Rising Canada recession risk to trigger at least 2 more rate cuts this year, economists predict [Video]

Growing recession risks to Canada from the U.S.-led trade war will push the Bank of Canada to cut interest rates at least twice more this year, some economists predict, although a majority of economists said policymakers will leave them unchanged on Wednesday.

U.S. President Donald Trump’s surprise announcement last week to put a 90-day pause on so-called reciprocal tariffs, except for China, did little to alter pessimism around Canada’s economic prospects as U.S. levies on autos, steel and aluminum remain in place.

Unpredictable U.S. trade policy alongside Trump’s increasingly severe dispute with No. 2 economy China has raised the chances of a global economic downturn and Canada is likely to suffer, given around 80 per cent of its exports go to the U.S.

Economists in the April 7-11 Reuters poll, taken amid the tariff policy uncertainty, now expect the Canadian economy to grow 1.2 per cent and 1.1 per cent …