Overview
- The central bank kept its policy rate at 2.25% for a second straight meeting and says it will hold if the outlook unfolds as forecast.
- Macklem says Canada must adapt to U.S. tariffs, slower population growth and artificial intelligence, warning the restructuring will take years and could be painful.
- He urged governments and businesses to lean into the transition through investment and adjustment, saying Canada cannot afford to fail.
- The governor emphasized unusually high uncertainty and the risk of misreading structural weakness as cyclical, cautioning that cutting rates could fuel inflation or delay needed change.
- Bank forecasts point to minimal labour‑force growth and no expected uptrend in unemployment, while AI adoption remains modest so broad economic effects may take time.