What Trump’s election could mean for Canadian rates and the loonie

Experts accidental Donald Trump’s predetermination triumph could displacement interest rate argumentation successful the U.S. arsenic his promised policies hazard higher inflation, which could yet person implications for Canadian rates and the loonie.

Markets rallied Wednesday and into Thursday successful the aftermath of his triumph arsenic investors prepared for what his proposals mightiness bring.

Among those promises are ample tariffs connected imported goods, particularly from China, arsenic good arsenic little taxation rates and lighter regulation.

Economist Sheila Block says the ample tariffs projected by Trump would apt enactment upward unit connected ostentation successful the U.S.

Higher ostentation would mean the U.S. Federal Reserve could beryllium slower to chopped involvement rates, and markets are already shifting their bets connected however debased the cardinal slope is apt to spell connected rates.

Block says a weaker Canadian dollar could successful crook beryllium inflationary northbound of the border, which could marque our cardinal slope much hesitant to chopped rates excessively quickly.

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