Bank of Canada governor says new US tariffs could push fourth-quarter growth below 1%

Sep 21, 7:42 PM UTC

Macklem outlines conditional growth risk as inflation pressures complicate rate decisions

Bank of Canada Governor Tiff Macklem said Canada’s fourth-quarter annualized growth could fall below 1% if new US tariffs remain in place—roughly half the rate expected before the latest escalation. He said renewed trade uncertainty could delay business investment and hiring. Macklem also described competing pressures on monetary policy: weaker growth could reduce inflation, while elevated oil prices could push it higher. He said there was not yet evidence that higher fuel costs were spreading broadly to other goods and services. This briefing covers 2026-09-20T07:38:39.505Z through 2026-09-21T19:38:39.505Z. The timestamp is Reuters publication metadata, not the time of Macklem’s remarks.

Navigating uncertainty and adapting to change · Bank of Canada says new US tariffs could slash fourth quarter growth · Bank of Canada Warns U.S. Tariffs Could Slash Fourth-Quarter Growth