Inflation caused by tariffs could force the Bank of Canada to raise interest rates by up to 1.25 percent, a level that exceeds those in many other countries, a new report suggests.
“Together with the rise in domestic tariff rates, this results in tighter monetary policy than otherwise in other countries, particularly those whose currencies have depreciated against the U.S. dollar,” reads the report by the Organisation for Economic Co-operation and Development (OECD).
