BANK OF CANADA GOVERNOR MACKLEM COMMENTS ON CAD AND RATE CUT

BANK OF CANADA GOVERNOR MACKLEM COMMENTS ON CAD AND RATE CUT
BANK OF CANADA GOVERNOR MACKLEM COMMENTS ON CAD AND RATE CUT

BANK OF CANADA GOVERNOR MACKLEM COMMENTS ON CAD AND RATE CUT

The Bank of Canada (BoC) cut rates by 25 basis points on January 29, 2025.

Governor Macklem stated that low inflation has been restored in Canada.

The threat of tariffs is having a larger impact on the Canadian Dollar (CAD) than the interest rate differential with the US.

Macklem noted that Canada can mitigate the impact of tariffs to avoid abrupt economic changes.

He also highlighted concerns that household debt is not sustainable, especially regarding growth in consumption.