Macklem Downplays Counter-Tariff Inflationary Impact

Bank of Canada Governor Tiff Macklem has stated that the inflationary impact of counter-tariffs is expected to be 'relatively modest'. This assessment comes as the central bank considers updating its estimates in light of recent developments. The situation in the Middle East is seen as a more significant concern for inflation.

Macklem emphasized that while counter-tariffs may have some effect on prices, their overall impact is not deemed substantial. He noted that the situation in the Middle East remains a major issue for inflation, suggesting that its effects are likely to be more pronounced.