Macklem Warns of Rising Inflation Risk Amid Ongoing Conflicts and Trade Wars

Bank of Canada Governor Tiff Macklem warned that inflation could rise if oil prices remain high. During a speech in Halifax on Monday, he stated that the ongoing conflict in the Middle East and the trade war's escalation have increased the risk of persistent inflation.

Macklem emphasized that the bank will not be 'too slow' to raise interest rates in response to rising inflation, which is currently above the bank's target of two percent. He also noted that economic growth could be roughly halved in the fourth quarter if tariffs remain in place.