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flag Canada's inflation is above target, and the central bank won't cut rates further due to ongoing price pressures.

flag 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. flag 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. flag Macklem signaled no further cuts are likely, citing tariff-related cost increases and structural productivity issues. flag He emphasized that fiscal policy, including infrastructure investment and reduced trade barriers, will be critical to long-term growth and affordability.

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