Charting the Global Economy: ECB Cuts Rates While Canada Holds

The European Central Bank and Bank of Canada opted for different policy responses to an escalating trade war, while both acknowledged growing risks to economic growth.

The ECB lowered interest rates for the seventh time since last June and officials underscored further headwinds to the bloc, prompting markets to boost bets on additional easing. Meantime, Canadian policymakers hit the pause button on their cutting cycle to assess the impact from US tariffs, which they said could cause a year-long recession.