The Bank of Canada is shaking up its playbook for setting interest rates, with Governor Tiff Mack5 Macklem dropping hints that rapid-fire adjustments might be the new norm as U.S. tariff turmoil throws long-term predictions out the window. Speaking in Calgary today to the city’s economic development group, Macklem signaled the central bank is ready to ditch the crystal ball and embrace a nimbler approach to monetary policy.
“We’re in uncharted waters,” Macklem said in prepared remarks. With trade tensions escalating and U.S. President Donald Trump’s tariff moves keeping everyone guessing, the Bank is bracing for a wild ride. “Instead of locking into one forecast and hoping for the best, we’re keeping our options open—flexible and adaptable is the name of the game.”
The tariff saga has already unleashed economic headaches for Canada, with rates and threats flipping faster than a Bay Street trader’s mood. Earlier this month, the Bank slashed its key interest rate by a quarter-point to 2.75 per cent, and all eyes are now on the next call slated for April 16. Macklem’s message? Expect the unexpected as the Bank navigates a high-stakes guessing game with the U.S.