Summary:
1- The UK and Canada seek to improve trade relations amid Trump’s tariffs.
2- The ECB’s chief economist expects it will take longer to reach 2% inflation.

The UK and Canada Seek to Improve Trade Relations Amid Trump’s Tariffs

Leaders from the United Kingdom and Canada held a phone call last Wednesday to discuss improving trade relations, although they did not publicly commit to resuming bilateral free trade negotiations, which were suspended last year. Negotiations on a free trade agreement between Canada and the UK were halted in January 2024 due to agricultural disputes. According to a statement from the British Prime Minister’s Office, Prime Minister Starmer welcomed “an international conversation on the importance of trade and cooperation.”

The ECB’s Chief Economist Expects It Will Take Longer to Reach 2% Inflation

ECB Chief Economist Philip Lane delivered a speech on Wednesday, stating that since inflation risks remain two-sided, flexibility in monetary policy formulation should be maintained. While officials are optimistic that consumer price increases will reach 2% this year, it may take longer than expected to achieve that target. Based on the latest economic data and policymakers’ statements, the market widely expects another interest rate cut in March. However, the trajectory beyond that has become increasingly contentious.