BoC Governor Macklem says if new US tarifffs remain in place, Q4 growth could be roughly halved to below 1%

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US President Trump, to Fox TV, says very big things are going to be happening in the not-so-distant future on Iran

BoC Governor Macklem says if new US tarifffs remain in place, Q4 growth could be roughly halved to below 1%

Mexico President says the government is looking for ways to reduce imports from other nations and buy more goods from the US

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  • If oil prices stay near USD 100/bbl, we'd expect inflation to edge up in coming months.
  • Fuel prices have risen more than we'd normally expect, reflecting damage to global refining capacity.
  • Recent gas prices have been more consistent with an oil price almost USD 40 higher than where it has been.
  • So far we haven't seen evidence that higher oil prices are spreading to other goods and services.
  • We don't want to raise rates and restrain growth if inflationary pressures are contained.
  • When it comes to rate decisions, we need to look beyond initial shock of higher oil prices.
  • Nor do we want to be too slow to respond if inflationary pressures are becoming more persistent.
  • There is growing evidence that many Canadian businesses have started to adapt to US tarrifs.
  • Expects that growth in labor force will be close to zero over the next few years

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