In a press conference held on Wednesday, Bank of Canada Governor Tiff Macklem confirmed that the central bank is handling economic developments with extreme caution, amid increasing uncertainty related to global trade policies, particularly U.S. tariffs.
Macklem, alongside Deputy Governor Carolyn Rogers, stated that the Canadian economy began 2025 with a strong performance, but since March "a lot has happened, yet the outlook remains unclear." He added: "We are moving carefully and will do everything we can to support the Canadian economy while maintaining our primary focus on price stability."
He noted that the Bank of Canada considered the option of lowering interest rates but preferred to wait before taking this step due to "significant uncertainty regarding U.S. tariff policies and their potential impacts on the Canadian economy." He explained that the impacts of these policies are not limited to trade but extend to market confidence levels and investment decisions.
Macklem confirmed he will participate in the upcoming International Monetary Fund meetings, expressing hope that these meetings will contribute to providing a clearer vision regarding the future of global economic policies. He added: "Anyone relying on economic forecasts must take into account a wide range of possible scenarios."
For her part, Deputy Governor Carolyn Rogers stated that Canadian financial markets have not shown any significant dysfunction, but she pointed out a "significant decrease in activity in Toronto's housing sector," noting that real estate has played a substantial role in the economy in recent years.
Rogers added that the decision not to change interest rates at this stage "came as a result of a clear consensus that waiting is the right decision for now until the economic and trade outlook becomes clearer."
