Bank of Canada governor Tiff Macklem has warned that the global economy, while resilient, is facing increasing strain due to ongoing conflicts and trade disruptions. Speaking to reporters on the sidelines of the International Monetary Fund meetings in Bangkok, Macklem noted that the economy has performed better than expected despite wars in Iran and Ukraine, as well as sweeping trade disruptions.
However, he emphasized that this resilience is being tested as persistent shocks, such as the Middle East conflict, drive up energy prices. Macklem cautioned that countries cannot indefinitely release global oil reserves without eventually needing to restock them.
The Bank of Canada will soon gain more insight into domestic price responses to global cost pressures when Statistics Canada releases its September inflation report on Monday.