Tiff Macklem

OTTAWA — Bank of Canada governor Tiff Macklem told Reuters he saw unusual potential for a new shock to the economy, given elevated geopolitical risks and US trade policy. Macklem said on Wednesday that more factors than usual could deter Canada from achieving the bank’s economic forecasts, citing US President Trump’s threats toward Greenland, his removal of Venezuela’s leader, and repeated threats to impose more tariffs on Canada. “There is unusual potential for a new shock, a new disruption,” Macklem said. “Geopolitical risks are elevated.” …The BoC, which on Wednesday said it would keep its interest rate on hold, released new projections for the economy and inflation in its monetary policy report. These forecasts for modest growth in 2026 and 2027 were largely similar to its estimates released in October, but Macklem believes there are more risks these projections could go wrong.