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.