Institution: The Bank of Canada is expected to cut interest rates in April due to recession risks facing the economy

ChainCatcher news, the Bank of Montreal has broken consensus, believing that the Bank of Canada will lower its key interest rate by 25 basis points to 2.5% in April. In the latest interest rate forecast, the company expects the Bank of Canada's policy rate to reach 2% this summer, citing the tightening of U.S. President Trump's tariff policies. Due to accelerating inflation, the market generally believes that the Bank of Canada will pause interest rate cuts in April.

Bank of Canada Governor Macklem reiterated the inflation risks posed by tariffs in a speech, adding that the price increases in February "caught our attention." The Bank of Montreal stated that while the CPI in March may remain high, the cancellation of the carbon tax by the Liberal government before the election is expected to cool the CPI in April. The bank indicated that a pause in interest rate actions in April is feasible, but leans towards a rate cut as the economy "yields to expected recession."