Bank of Montreal (BMO) has revised its outlook for Canadian interest rates in response to the economic impact of Trump’s 25% tariff.

BMO now anticipates the Bank of Canada will implement six consecutive quarter-point interest rate cuts, bringing the policy rate down to 1.5% by October.

BMO’s updated forecast suggests that the Bank of Canada will adopt a more aggressive easing cycle to counteract these headwinds, support domestic demand, and mitigate the risk of an economic slowdown. The anticipated rate cuts are also expected to influence the Canadian dollar, potentially putting downward pressure on the currency, while providing some relief to borrowers through lower lending costs.

https://www.tradingview.com/news/forexlive:42ac5e8b3094b:0-bank-of-canada-will-implement-six-consecutive-quarter-point-interest-rate-cuts/#:~:text=Bank%20of%20Montreal%20%28BMO%29%20has%20revised%20its%20outlook,the%20policy%20rate%20down%20to%201.5%25%20by%20October.