Reported about 1 month ago
Bank of Canada Governor Tiff Macklem stated that the federal government's decision to reduce immigration targets will have a modest effect on economic growth but limited impact on inflation. While the decrease in population growth may slow GDP growth due to fewer consumers, it will also contract the labor supply, leaving price pressures largely unchanged. Macklem emphasized that the inflation forecast remains unaffected by population growth changes, and the central bank has already considered a slowdown in growth in its predictions.
Source: YAHOO