BoC holds as governor says Fed independence affects Canada
Analysts disagree over underlying strength of country’s economy
The Bank of Canada (BoC) has held its policy rate at 2.25%, as its governor warned about the potential impact on the country from tariffs and threats to the US Federal Reserve’s independence.
In a statement following the decision today (January 28), Tiff Macklem said it was “too early to tell how well the Canadian economy will adjust to current tariffs and ongoing uncertainty”.
He said a loss of Fed independence “would affect us all”, as the Canadian and US markets were closely intertwined. “It’s
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