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Macklem: Structural change—Canada at a crossroads
Good afternoon. It’s a pleasure to be back at the Empire Club to deliver my first speech of the year. And what a year it’s shaping up to be. Last week, the Bank of Canada held its policy rate at 2¼%—and we had two key messages. First, our economic outlook has not changed much since last fall, but uncertainty around our forecast has increased. We continue to expect the Canadian economy to grow modestly and inflation to stay close to the 2% target. But geopolitical risks are heightened, and US trade policy remains unpredictable. Second, the Canadian economy is adjusting to US protectionism. Canadian businesses ... (full story)
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BoC's Gov. Macklem: Transition to new economy could be more painful than we'd like.
— FinancialJuice (@financialjuice) February 5, 2026
BoC's Gov. Macklem: Lowering rates in face of weak economy could stoke inflation if the weakness is due to lower productive capacity instead of a cyclical downturn in demand.