Macklem: Canadian Monetary Policy Based on Homegrown Data

Bank of Canada governor Tiff Macklem emphasized that monetary policy decisions will be based on Canadian economic realities, rather than influenced by Federal Reserve actions or market predictions.

Macklem made this statement after a speech at the Halifax Convention Centre. The central bank's governing council will continue to make data-driven decisions, prioritizing the needs of the Canadian economy.

The U.S. mortgage system provides stability when rates are low, but it also limits market growth because homeowners can become stuck with mortgages if prices fall. Canadians renewing their mortgages this year might envy the 30-year fixed-rate mortgages available in the US, but Macklem's statement serves as a reminder that there is no one-size-fits-all solution to monetary policy.

The Bank of Canada has greenlit a $3.5-billion expansion of an LNG terminal in Delta, British Columbia. This project will boost the facility's output by 10 times once complete and provide fuel for the lower mainland's marine shipping industry and overseas LNG market.