Canadian economy adjusts to tariffs, modest growth expected

Senior Deputy Governor Carolyn Rogers outlined the Bank of Canada's assessment of the Canadian economy, highlighting its ongoing adjustment to US tariffs and the evolving global trade landscape.

This period of adjustment is anticipated to be protracted, necessitating a patient approach to policy.

Growth projections indicate a modest expansion in the near term, reflecting both external headwinds and domestic factors.

Despite these challenges, inflation is projected to remain consistently near the Bank's 2 percent target, a testament to the effectiveness of current monetary policy settings and the resilience of the Canadian economic framework.

The Bank remains vigilant, monitoring global developments and their potential impact on domestic price stability and employment levels.

The focus is on ensuring a smooth transition through these complex economic currents while maintaining financial stability.

The Bank of Canada is actively pursuing a plan to enhance its accessibility to all citizens and is committed to guiding its Reconciliation journey.

In a critical regulatory role, the Bank supervises payment service providers under the Retail Payment Activities Act, ensuring they meet stringent risk management requirements and safeguard consumer funds.

The institution is also engaged in economic research, contributing to a new dataset that helps identify gender gaps in research output and citations among scholars at top universities.

This work highlights the Bank's broader engagement beyond traditional monetary policy.