As growth concerns intensify, Bank of Canada Governor Tiff Macklem raised the possibility of accelerating the pace of interest rate cuts, suggesting that policymakers could cut rates by as much as 50 basis points if economic growth disappoints.
The Group of Seven (G7) economies grew at an annualized rate of 2.1 per cent in the second quarter, but concerns are growing that falling oil prices, rising unemployment and falling immigration levels could push Canada close to stagnation.
Macklem said rate setters are increasingly concerned about Canada’s labour market and the potential for a hit to the economy from lower crude prices.
