Bank of Canada Is Ready to Respond If Outlook Changes, Says Governor Macklem

10:20 AM EST, 12/10/2025 (MT Newswires) -- Governor Tiff Macklem on Wednesday said he had three main messages after the Bank of Canada's Governing Council on Wednesday decided to keep rates on hold.

First, steep United States tariffs on steel, aluminum, autos and lumber have hit these sectors hard, and uncertainty about U.S. trade policy is weighing on business investment more broadly. But so far, the economy is proving resilient overall, noted Governor Macklem in his monetary policy decision press conference opening statement. The governor will hold a press conference at 10:30 a.m. ET on Wednesday.

Second, inflationary pressures continue to be contained despite added costs related to the reconfiguration of trade, said Macklem. Total consumer price index inflation has been close to the 2% target for more than a year now, and the BoC expects it to remain near the target.

Third, in the current situation, Macklem added Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment.

Nevertheless, uncertainty remains high and the range of possible outcomes is wider than usual, said Macklem. If the outlook changes, the BoC is prepared to respond, pointed out the governor.

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