Bank of Canada governor flags growth risk as tariff talks break down
Philip Petursson, chief investment strategist at IG Wealth Management in Canada, placed the next rate hike no earlier than 2027.
Stephen Brown, chief North America economist at Capital Economics, suggested “an interest rate hike at the final meeting of the year, in December, is arguably now looking more likely” if energy prices persist.
Macklem was clear that monetary policy has limits. The central bank cannot offset tariff effects or control global energy prices.
“As these risks evolve, we are prepared to adjust monetary policy as needed,” he said.
“We remain focused on keeping inflation low, stable and predictable. In an uncertain world, that’s one of the most important contributions we can make to the economic well-being of all Canadians.”
