BOC Governor Macklem said new US tariffs could push Canada's Q4 economic growth below 1%. He warned slower growth would weigh on inflation while Middle East conflict-driven oil gains could lift it; annual inflation is about 3% versus the BOC's 2% tar

2026-09-21

BOC Governor Macklem said new US tariffs could push Canada's Q4 economic growth below 1%. He warned slower growth would weigh on inflation while Middle East conflict-driven oil gains could lift it; annual inflation is about 3% versus the BOC's 2% target. Macklem said if oil stays near $100/bbl, inflation could rise modestly. Canada rebounded in Q2 with 3.3% annualized growth; after roughly 18 months of US tariffs firms and households had begun adjusting plans and resuming investment and consumption, but the latest escalation "could again prompt firms to delay investment and hiring decisions." He added that if the new tariffs persist, Q4 growth could be roughly halved to under 1%.