Economics
Rate Cuts Are No Panacea in a Trade War, Warns Bank of Canada
- Stock investors not ‘on to’ the complexity of it, Poloz says
- U.S. stocks hit fresh records as Fed signals rate cuts coming
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Investors may think central banks can prevent a trade war-induced recession by cutting interest rates, but it’s never that simple, says Bank of Canada Governor Stephen Poloz.
Responding to a reporter’s question about the limits of monetary policy when dealing with trade tensions, Poloz replied it’s not as easy as lowering borrowing costs.