Bank of Canada Governor Tiff Macklem warned on September 21 that new U.S. tariffs could reduce Canadian fourth-quarter growth to below 1% if they remain in place. He said uncertainty may cause firms to delay investment and hiring. The bank faces a competing concern: Canada’s annual inflation rate was 3%, above its 2% target, and sustained high oil prices could add pressure. The growth figure is a conditional scenario, not a final outcome or updated official forecast.
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Bank of Canada Warns Tariffs Could Weigh on Fourth-Quarter Growth
Governor Tiff Macklem said Canadian growth could fall below 1% in the fourth quarter if new U.S. tariffs remain in place, as businesses reconsider investment and hiring.
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