Bank of Canada’s Macklem highlights persistent inflation and economic softness, signaling potential policy adjustments if conditions shift.
Bank of Canada Governor Tiff Macklem stated inflation is still running above the central bank’s target, despite a softening economy. He noted the policy rate is at the lower end of the neutral range, aimed at containing inflation amid uncertainty.
Macklem emphasized humility in decision-making and readiness to act if economic conditions change. He also cited short-term price increases in computers and competitive pressures from U.S. AI investments as factors influencing inflation dynamics.
The Canadian dollar showed strength against major currencies, including the euro, in recent trading sessions.