The Globe and Mail reports in its Saturday edition that Bank of Canada Governor Tiff Macklem anticipates sluggish economic growth and a weak labour market in the latter half of the year due to U.S. tariffs and trade uncertainty affecting investment and hiring in Canada. The Globe's Mark Rendell writes that Mr. Macklem expects the Canadian economy to grow at a sluggish pace in the third and fourth quarters. He cautions against putting too much weight on September job numbers, which showed a rebound in employment. "It's going to be growth, but it's going to be soft growth. It's not going to feel very good, and it's certainly not going to be enough to close the output gap," Mr. Macklem said, noting that the bank is projecting growth in gross domestic product of about 1 per cent in the second half of the year. Mr. Macklem is mum on whether the BOC would cut interest rates again at its meeting on Oct. 29. There are several key pieces of data still to come, he said, including September inflation numbers and the bank's quarterly business survey, which will be published next week. Much of the debate around the upcoming rate decision centres on how Mr. Macklem and his policy-makers are thinking about Canada's labour market.
© 2026 Canjex Publishing Ltd. All rights reserved.