Tariffs will induce structural change in Canada – Macklem
Increased trade frictions with US will hurt country’s economy but represent “new reality”, says governor
US tariffs, should they materialise, would structurally lower Canada’s level of output, the governor of the country’s central bank has said.
Speaking at an event in Mississauga, Ontario, on February 21, Tiff Macklem said US tariffs would “all but wipe out” Canada’s projected output growth over the coming two years.
“We may eventually regain our current rate of growth, but the level of output would be permanently lower,” the Bank of Canada (BoC) governor said. “It’s more than a shock – it’s a
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Egypt holds rates at 27.25%
Central bank projects gradual decline in inflation, but points to upside risks from US tariffs
Upside risks from Trump tariffs prompted Fed to hold rates
FOMC minutes show that January’s decision was partly informed by potential changes in US trade policy
China holds loan prime rates
PBoC stays put again as yuan strengthens after Trump signals potential trade talks with Xi
Bank Indonesia holds rates at 5.75%
Central bank faces dilemma of whether to prioritise bolstering growth or propping up currency
New Zealand continues easing cycle with 50bp cut
Trade concerns take centre stage as RBNZ delivers fourth consecutive reduction
Australia cuts rates for first time since 2020
RBA delivers long-awaited 25bp reduction but says markets are overconfident about further easing
EMs resilient to US monetary spillovers, panellists say
Turkish and Thai governors discuss policy challenges at IMF conference in Saudi Arabia
Bank of Russia holds rates
Inflation ticks up as central bank updates forecast again