Governor Tiff Macklem said that Prime Minister Mark Carney’s fiscal plans are not yet complicating the Bank of Canada’s efforts to contain inflation. His comments came as the Canadian government increased spending to stimulate economic growth. Despite recent rate increases aimed at curbing inflation, the central bank could raise rates again if inflationary pressures persist. Markets now price in a reduced likelihood of an aggressive rate increase in December, with a hike of at least 50 basis points considered unlikely. The announcement scheduled for December 9, 2026, will be a key event, while upcoming inflation and employment data and further comments from Macklem or Carolyn Rogers may influence expectations.
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