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Rosenberg Says Bank of Canada Hold No Surprise, Highlights Rising Trade Risks

BY MT Newswires | ECONOMIC | 01/29/26 07:45 AM EST

07:45 AM EST, 01/29/2026 (MT Newswires) -- There was no surprise when the Bank of Canada held steady at a policy rate of 2.25% on Wednesday, said Rosenberg Research.

In his post-meeting press conference on Wednesday, BoC Governor Tiff Macklem noted that geopolitical risks -- especially on trade -- appear to have rebounded in January, after being a bit quieter in the second half of 2025.

According to Rosenberg Research, more interesting was some of Macklem's unusually stark language: "the days of open, rules-based trade with the United States are over."

In light of Prime Minister Mark Carney's similar-sounding notes in Davos, it seems as if they are on the same page, added Ronseberg.

Macklem also noted the importance of Federal Reserve independence for Canada, given the close integration of Canadian financial markets with United States markets.

The BoC is well aware of the stakes from trade risks and geopolitical risks -- which Rosenberg interprets as a willingness to ease further if things go sideways. In other words, interest rate risks are skewed to the downside much more than the upside.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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