Macklem says slowing globalization could mean higher inflation
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Bank of Canada Governor Tiff Macklem says slowing globalization could put upward pressure on inflation, and trade disruptions may mean greater deviations from the central bank’s two per cent target.
Macklem, speaking this week to the Canada-UK Chamber of Commerce in London, England, said the central bank, to prepare itself for the supply shocks that come with trade disruptions, is investing in data and analysis to better understand supply chains, especially at the global level. The bank is also using more microdata to track the consequences of trade and industrial policy.
