Macklem says moving too slowly on rate hikes would force faster increases later
Bank of Canada Governor Tiff Macklem says a delay now would mean sharper rate increases down the road.
Published
Bank of Canada Governor Tiff Macklem says the central bank cannot afford to move too slowly on interest rates. He says if the bank waits too long, it would have to raise rates very quickly, and by more than if it had acted earlier.
The comment follows Macklem's recent warning that new US tariffs could roughly halve growth in the fourth quarter.
Macklem's remarks add to pressure on the bank to act sooner rather than later, as it weighs inflation against the growth risks tariffs pose. The comment frames further rate increases as inevitable but does not change the timing markets already expect, leaving the medium-term path largely where it was.