Skip to Main content

11.45°^C Vancouver

News Entertainment Sports Videos Shows Podcast Contact Us

May 2, 2024 4:23 PM - The Canadian Press

There's a limit to how much interest rates in Canada and U.S. can diverge: Macklem

Share On

theres-a-limit-to-how-much-interest-rates-in-canada-and-u-s-can-diverge-macklem

The Federal Reserve held interest rates on Wednesday and signalled it won't cut them until it is more confident that the annual inflation rate is headed back to the two per cent target.(Photo: The Canadian Press)

Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but there is a limit to how much they can diverge.

Macklem made the comments while testifying before the House of Commons finance committee today.

The governor says Canada is nowhere close to the limit when it comes to how much Canadian and American interest rates can differ.

The Bank of Canada is widely expected to begin lowering its policy rate in the coming months, while forecasters expect the U.S. Federal Reserve to take longer.

The Federal Reserve held interest rates on Wednesday and signalled it won't cut them until it is more confident that the annual inflation rate is headed back to the two per cent target.

The Bank of Canada's key interest rate is currently sitting at five per cent, which is below the U.S. Federal Reserve's target range for the funds rate of 5.25 to 5.5 per cent.

Latest news

doug-ford-denies-interfering-in-u-s-elections-says-canada-u-s-ties-have-changed-forever

CanadaOct 22, 2026

Doug Ford Denies Interfering in U.S. Elections, Says Canada-U.S. Ties Have Changed Forever

Ontario Premier Doug Ford has denied allegations of interfering in U.S. elections, saying it has become clear that Canada’s relationship with the United States has changed forever. Ford stressed that regardless of the outcome of the upcoming U.S. midterm elections or who occupies the White House in the future, relations between the two countries will never return to what they once were. He said Canada must prepare accordingly. A fact sheet released by the U.S. Assembly on Wednesday alleged that Ford had specifically urged Prime Minister Mark Carney in August 2026 to impose retaliatory tariff

CanadaOct 22, 2026

U.S. Accuses Canada of Serious Election Interference

The United States has accused Canada of attempting to influence American elections, as President Donald Trump’s administration intensifies its campaign against voting by non-citizens ahead of the November 3 midterm elections. According to reports, at least 11 Canadians have been arrested this year as part of the crackdown. The U.S. Embassy in Ottawa linked the actions to alleged Canadian interference in American politics, claiming Canadian politicians had attempted to influence U.S. elections through trade policies, political campaigning and public statements. The embassy’s list reportedly

CanadaOct 21, 2026

Canada Says Proposed Social Media Ban for Under-16s Is Constitutional

The Canadian government has defended proposed Bill C-34, which would ban children under 16 from using social media, arguing that it is consistent with the Canadian Charter of Rights and Freedoms. In a statement issued by Justice Minister Sean Fraser, the government acknowledged that the proposed digital safety legislation could affect freedom of expression but maintained that it falls within constitutional limits. The government argued that age-based restrictions are already in place for activities such as voting and driving, and said similar measures are justified to protect children from the

danielle-smith-warns-ucp-members-support-canada-or-leave-the-party

AlbertaOct 21, 2026

Danielle Smith Warns UCP Members: Support Canada or Leave the Party

Alberta Premier Danielle Smith has issued a strong warning to members of her United Conservative Party (UCP), saying those who cannot support a pro-Canada position should return their party memberships and find another party. In a video posted on social media Wednesday, Smith made it clear that the UCP cannot afford divisions over the issue, warning that internal disagreements could put the party at risk of losing the next provincial election to the opposition NDP. Her comments came after Monday’s referendum, in which Albertans voted in favour of remaining part of Canada. Smith acknowledged

psac-announces-strike-vote-for-120-000-federal-workers

CanadaOct 21, 2026

PSAC Announces Strike Vote for 120,000 Federal Workers

Canada’s largest federal public service union has announced a nationwide strike vote after contract negotiations with the government stalled. The Public Service Alliance of Canada (PSAC) represents approximately 120,000 workers, including wildfire firefighters, passport officers, fisheries officers, federal teachers, librarians and administrative staff. The strike vote will run from November 16, 2026, to January 22, 2027. The union and the Treasury Board have been in a dispute over a new collective agreement for the past 18 months. PSAC alleges that the federal government has repeatedly dela

Related News

Doug Ford Denies Interfering in U.S. Elections, Says Canada-U.S. Ties Have Changed Forever

Doug Ford Denies Interfering in U.S. Elections, Says Canada-U.S. Ties Have Changed Forever

Ontario Premier Doug Ford has denied allegations of interfering in U.S. elections, saying it has become clear that Canada’s relationship with the United States has changed forever. Ford stressed that regardless of the outcome of the upcoming U.S. midterm elections or who occupies the White House in the future, relations between the two countries will never return to what they once were. He said Canada must prepare accordingly. A fact sheet released by the U.S. Assembly on Wednesday alleged that Ford had specifically urged Prime Minister Mark Carney in August 2026 to impose retaliatory tariff

U.S. Accuses Canada of Serious Election Interference

U.S. Accuses Canada of Serious Election Interference

The United States has accused Canada of attempting to influence American elections, as President Donald Trump’s administration intensifies its campaign against voting by non-citizens ahead of the November 3 midterm elections. According to reports, at least 11 Canadians have been arrested this year as part of the crackdown. The U.S. Embassy in Ottawa linked the actions to alleged Canadian interference in American politics, claiming Canadian politicians had attempted to influence U.S. elections through trade policies, political campaigning and public statements. The embassy’s list reportedly

Canada Says Proposed Social Media Ban for Under-16s Is Constitutional

Canada Says Proposed Social Media Ban for Under-16s Is Constitutional

The Canadian government has defended proposed Bill C-34, which would ban children under 16 from using social media, arguing that it is consistent with the Canadian Charter of Rights and Freedoms. In a statement issued by Justice Minister Sean Fraser, the government acknowledged that the proposed digital safety legislation could affect freedom of expression but maintained that it falls within constitutional limits. The government argued that age-based restrictions are already in place for activities such as voting and driving, and said similar measures are justified to protect children from the

Legals

Journalism code of ethics

© 2021 AKASH Broadcasting Inc.

MANAGED BY STRATWIT

useful links

Accessibility Plan

Broadcasting Notice of Consultation

BC Children's Hospital