21 March | Other

Bank of Canada intends to be more flexible due to US tariff uncertainties

Bank of Canada intends to be more flexible due to US tariff uncertainties

Bank of Canada Governor Tiff Macklem expressed the need to reconsider monetary policy due to US tariff uncertainties. He said the regulator has to be less forward-looking and more flexible until the situation is clearer.

The central bank's moves will still be aimed at battling inflation, as the US duties could push up consumer prices in Canada, Macklem said. The regulator strives to keep inflation at 2%, the mid-point of its 1–3% target range.

In addition, ever-changing tariff threats, according to Macklem, negatively affect business investment and consumer sentiment in Canada. Considering the above-mentioned factors, he said that a new economic crisis in Canada is likely to take place.

The central bank will announce its next interest rate decision on April 16. Thus, officials will closely monitor the dynamics of consumer prices. However, inflation in Canada could surge again despite current efforts to curb it, Macklem believes.

Elena Berseneva MarketCheese
Period: 22.07.2025 Expectation: 1545 pips
Buying Tesla shares with target at 332 amid company’s global expansion
Today at 11:05 AM 26
Period: 25.07.2025 Expectation: 800 pips
Ascending channel to limit AUDUSD correction
Today at 10:09 AM 22
Period: 29.08.2025 Expectation: 1000 pips
Selling SPX to 6,170 level
Today at 07:37 AM 24
Gold sell
Period: 21.07.2025 Expectation: 6600 pips
Gold correction looms amid overbought conditions and stronger dollar
Yesterday at 10:58 AM 89
Period: 18.07.2025 Expectation: 1100 pips
Silver prices surge toward $40 level
Yesterday at 10:02 AM 47
Period: 11.07.2025 Expectation: 920 pips
GBPUSD falls as UK GDP unexpectedly shrinks
11 July 2025 63
Go to forecasts