In January 2015, indicators suggested that Canada’s economy was in good shape. But the horizon was dark because oil prices had collapsed. The central bank ignored the data and cut interest rates.
Fast forward to July 2018. Indicators suggest that Canada’s economy is in good shape. But the horizon is dark because US President Donald Trump has started what some are calling a global trade war. The central bank embraced the data and raised interest rates.
Why respond to one economic threat and not the other?
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