Bank of Canada Gov. Macklem Pledges to Proceed Carefully on Further Rate Increases
By Paul Vieira
OTTAWA--Bank of Canada Gov. Tiff Macklem told the country's lawmakers that policymakers would proceed cautiously on delivering more rate increases due to elevated trade and geopolitical uncertainty.
In an opening statement before the legislature's finance committee, Macklem largely reiterated the reasons behind last week's decision to raise interest rates: namely, a much higher inflation outlook and a modest improvement in growth.
The Bank of Canada increased its policy rate to 2.5% last week, or the first boost in over three years. Macklem said there "could be a need to raise" rates further, but acknowledged the heightened uncertainty hovering over the economy.
"Developments in the Middle East and Canada-U.S. trade relations both remain fluid," Macklem said.
"There is also uncertainty about the impact of new U.S. tariffs and how much energy costs will seep into consumer prices more broadly," he said.
However, he added, "we don't want to see higher inflation persisting."
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
November 03, 2026 11:35 ET (16:35 GMT)
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