The head of the Bank of Canada says he thinks interest rates are at the lower end of where they can go as he tries to balance boosting the tariff-hit economy and keeping inflation in check.
Speaking at a conference in Toronto, Governor Tiff Macklem says tariffs are a slower-moving pressure than some crises, but that they are likely to put pressure on prices over time.
The inflation risk means that while Canada’s economy could use the boost of lower interest rates, he’s limited in how much further he could push them down.
The Bank of Canada lowered its benchmark interest rate by a quarter percentage point to 2.25 percent last Wednesday….