Macklem: Significant US Trade Restrictions May Force Rate Cuts
Bank of Canada Governor Macklem stated that significant new US trade restrictions could necessitate cutting interest rates, and that uncertainty remains unusually elevated.
Bank of Canada Governor Tiff Macklem indicated that the central bank may need to cut interest rates if the United States imposes significant new trade restrictions. He described uncertainty as "unusually elevated" and warned that risks could shift, requiring monetary policy to remain nimble.
The comments highlight the potential economic impact of escalating US trade policies on Canada's economy. Macklem's remarks suggest the Bank of Canada is prepared to adjust policy in response to external shocks.
Source: First Squawk