The Globe and Mail reports in its Thursday edition that Bank of Canada Governor Tiff Macklem says high interest rates are affecting Canada more significantly than the United States, which could lead to a divergence in the monetary policies of the two countries. The Globe's Mark Rendell writes that Mr. Macklem told the Senate committee on banking, commerce and the economy on Wednesday that he and his BOC colleagues are becoming more confident that inflation is on a sustainable path back to 2 per cent. Earlier that day, U.S. Federal Reserve chairman Jerome Powell delivered the opposite message following the latest Fed rate decision. Mr. Macklem told the Senate committee: "The Canadian data and the American data are developing in slightly different ways. Six months ago, the U.S. economy was experiencing some fairly good inflation readings, while our inflation rate was somewhat stagnant. In the most recent three months, we have received some more encouraging inflation readings. ... More broadly, our economy has been much weaker than the United States. Monetary policy looks like it's having more traction in Canada." He noted the difference between U.S. and Canadian mortgage markets as one possible explanation.