Bank of Canada Governor Warns Against Rate Cuts Amid Economic Weakness

Bank of Canada Governor Tiff Macklem has cautioned against reducing interest rates in the face of economic weakness. According to Jin10, Macklem emphasized that if the economic downturn is driven by a decline in production capacity rather than a cyclical drop in demand, lowering rates could exacerbate inflation. This statement highlights the central bank's concern over the potential inflationary impact of monetary policy adjustments in the current economic climate.