How could Canada, U.S. trade talks impact your mortgage?
The ongoing trade war between Canada and the United States could be coming to an end after Prime Minister Mark Carney and U.S. President Donald Trump’s meeting at the G7 summit in Kananaskis last week, where they both agreed on reaching a deal withing the next month.
“I think we’re going to accomplish a lot. And our primary focus will be trade and trade with Canada,” Trump said at the summit.
CTV News Ottawa investigates how reaching a deal could impact your mortgage rate.
Tariffs mean higher inflation, interest rates: Economist
Moshe Lander, Concordia University economics professor told CTV News Wednesday the tariffs associated with the trade war increase the inflation rate. He says higher inflation means higher interest rates.
“(Tariff wars) should start to stall the Canadian economy,” he said.
If a deal is reached, “we would see flat or even negative growth, which means that the Bank of Canada should cut interest rates to boost growth. You can’t simultaneously increase and decrease interest rates,” according to Lander.
