Bank of Canada head ‘encouraged’ by Ottawa’s efforts to diversify economy

Bank of Canada governor Tiff Macklem is 'encouraged' by the federal government's efforts to diversify the economy and protect it against global trade shocks. The Bank of Canada held its benchmark interest rate steady at 2.25 per cent. Macklem stated that Ottawa's fiscal update will likely have little impact on the central bank's forecasts for inflation. The bank updated its outlook for the economy and flagged risks including the energy price spike from the war in Iran and the review of the Canada-U.S.-Mexico trade agreement. Depending on how these risks play out, the Bank of Canada's policy rate might need to adjust. Macklem emphasized the bank's commitment to keeping inflation anchored at two per cent.