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: 27.05.2025 Expectation: 50000 pips
Buying BTCUSD amid growing institutional adoption with target 110,000
Today at 12:21 PM 30
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 30.05.2025 Expectation: 5000 pips
Tesla shares correct after explosive gains
Today at 08:25 AM 22
Period: 22.05.2025 Expectation: 600 pips
AUDUSD will grow to 0.64900 amid US rating downgrade
Today at 08:20 AM 31
Gold buy
Period: 23.05.2025 Expectation: 6000 pips
US credit downgrade would send gold to 3290
Yesterday at 11:09 AM 129
Period: 26.05.2025 Expectation: 3000 pips
Fundamental factors constrain SPX's growth potential
Yesterday at 08:27 AM 52
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 23.05.2025 Expectation: 700 pips
Silver will drop to 31.7 amid de-escalation of US-China relations
Yesterday at 07:55 AM 30
Go to forecasts