G-7 Central Banks Prepare First Responses to US Chaos: Eco Week

The first Group of Seven monetary policy decisions since President Donald Trump’s trade war unleashed global market turmoil may prompt diverging responses from either side of the Atlantic.

While Bank of Canada officials on Wednesday could keep borrowing costs on hold to guard against the potential inflationary impact of an ongoing tariff battle with the US, the European Central Bank is now widely anticipated to reduce interest rates the following day.

The next Federal Reserve decision isn’t until May 7, so this week’s meetings put the onus on policymakers in Frankfurt and Ottawa to soothe investors while assessing ...