Macklem: Energy Prices Test Canada's Rate Patience — SkimNews
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- Bank of Canada Governor Tiff Macklem said Friday that Canada has not yet raised interest rates despite elevated energy prices.
- Macklem confirmed the central bank has been "looking through" the increase in energy prices so far as part of its policy approach.
- Macklem cautioned that the longer elevated energy prices persist, "the harder that gets" — signaling growing pressure on the BoC's patience with its current rate stance.
- Macklem delivered the remarks during a panel discussion at the annual meetings of the IMF and World Bank in Bangkok.
Why it matters: Canadian households and businesses have so far benefited from the Bank of Canada holding rates steady, but Macklem's own framing puts a clock on that patience: if elevated energy prices persist, the BoC's "looking through" strategy loses viability and a rate response becomes likelier.
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