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Bank of Canada’s Macklem: US tariffs could roughly halve fourth-quarter growth to below 1%

investinglive.com · 2h · first reportShare

Comments from Bank of Canada Governor Tiff Macklem cross the wires: If new US tariffs remain in place, Q4 growth could be roughly halved to below 1% If oil prices stay near $100 a barrel, we'd expect inflation to edge up in coming months Fuel prices have risen more than we'd normally expect, reflecting damage to global refining capacity Recent gas prices have been more consistent with an oil price almost $40 higher than where it has been So far we haven't seen evidence that higher oil prices are spreading to other goods and services We don't want to raise rates and restrain growth if inflationary pressures are contained Bank of Canada says new US tariffs could slash fourth-quarter growth When it comes to rate decisions, we need to look beyond the initial shock of higher oil prices Nor do we want to be too slow to respond if inflationary pressures are becoming more persistent There is growing evidence that many Canadian businesses have started to adapt to US tariffs Bank expects that gr