EJQ3 - Winter 2025 - Journal - Page 43
General Market Commentary
IN HIS YEAR-END SPEECH FOR 2024, Bank of Canada Governor Ti昀昀 Macklem con昀椀rmed that in昀氀ation is back at the Bank’s 2 per cent target and noted the policy rate
decrease by 50 basis points to 3.25 per cent, the 昀椀fth consecutive decrease since June.
“We’ve come a long way in the past two years. Monetary policy has worked to restore
low in昀氀ation. Interest rates have come down substantially, and household spending
has begun to pick up. But I am not here to give a victory speech,” said Macklem, who
notes that the nation needs to achieve price stability to give Canadians con昀椀dence
about their cost of living.
The Bank of Canada has been conducting a review of the policy actions taken to restore 昀椀nancial stability and support the economy during the pandemic. This work
is nearly done, according to Macklem. Once complete, the Bank will publish a review together with an assessment by an independent panel of experts.
Macklem explained that the spike in in昀氀ation in 2022 was a reminder that even
though in昀氀ation was relatively low and stable for 30 years leading up to the pandemic, central banks cannot take public trust for granted.
BANK OF CANADA
GOVERNOR TIFF MACKLEM
PHOTO CREDIT:
WIKIMEDIA COMMONS
CUTLINE
For 2025, the Bank has set three priorities to help deliver for Canadians in a more
uncertain world. “We need to work with our international partners to try and
shape the future. Canada’s G7 presidency next year is an opportunity to lead,”
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