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Canada's inflation is above target, and the central bank won't cut rates further due to ongoing price pressures.
Bank of Canada Governor Tiff Macklem said inflation remains above target at 2.5% core rate, with headline inflation at a seven-month high, raising concerns about persistent price pressures.
Speaking on November 3, 2025, he noted the recent 0.25% rate cut to 2.25% has brought rates near the low end of the neutral range, providing stimulus without fueling inflation.
Macklem signaled no further cuts are likely, citing tariff-related cost increases and structural productivity issues.
He emphasized that fiscal policy, including infrastructure investment and reduced trade barriers, will be critical to long-term growth and affordability.
La inflación de Canadá está por encima de la meta, y el banco central no reducirá las tasas aún más debido a las continuas presiones sobre los precios.