Bank of Canada to Monitor Signs Of Broader Job-Market Weakness, Macklem Says

By Paul Vieira

OTTAWA--Bank of Canada officials are tracking labor-market conditions to determine whether job cuts in trade-exposed sectors like manufacturing start spreading in other parts of the economy, Gov. Tiff Macklem said Wednesday.

In the event that unfolds, it would signal trade uncertainty and higher tariffs are dampening demand, and could exert downward pressure on inflation, said Macklem, according to prepared remarks set for delivery at a board of trade luncheon in St. John's, Newfoundland.

"We are watching closely for signs that weakness in the job market is broadening," Macklem said. Senior Bank of Canada policymakers believe that "the weaker the economy and the more downward pressure on inflation, the more there would there would be a need to lower the policy interest rate further," he added.

The central bank's next scheduled rate decision is in six weeks, or July 30.

Write to Paul Vieira at [e-mail]

(END) Dow Jones Newswires

06-18-25 1130ET