MNI BRIEF: Canada Showing Resilience Not Recession At Year End

Bank of Canada Governor Tiff Macklem said Wednesday the economy has beaten some of the dire scenarios officials and investors laid out earlier this year as the U.S. imposed tariffs.

"As we get to the end of the year the R-word people are talking about is resilience" instead of recession, he said in response to a question from MNI at a press conference. (See: MNI BOC WATCH: Macklem Sees Continued Hold If Forecast Is Met) 

Recent upgraded GDP estimates for the past few years are welcome but don't change the Bank's October outlook of an economy with slack and slow growth next year, he said. Officials will be "symmetric" in reviewing potential shocks that could motivate the next rate change, he said. 

Canadians are still upset with high prices even with inflation back at target but the cost of tackling that problem is too high, Macklem said. “We’re not going to lower prices overall," he said. “That would cause a severe recession in Canada, nobody wants that.”