The head of the Bank of Canada is signalling a shift in how the central bank sets its key interest rate as trade uncertainty with the United States makes long-term forecasting much more difficult.

OTTAWA - The head of the Bank of Canada has signalled a shift in how the central bank sets its benchmark interest rate at a time when tariff uncertainty with the United States has made long-term forecasting much more difficult.

The Bank of Canada cut its benchmark interest rate by a quarter-point to 2.75 per cent earlier this month.

OTTAWA - The head of the Bank of Canada has signalled a shift in how the central bank sets its benchmark interest rate at a time when tariff uncertainty with the United States has made long-term forecasting much more difficult.Governor Tiff Macklem was in Calgary on Thursday speaking to the city's economic development group.The Canadian economy was in a strong position at the start of 2025 as inflation was under control and growth was picking up, he said in prepared remarks for the speech.With the central bank’s benchmark interest rate quickly returning to lower levels, it appeared as though Canada had managed to avoid a recession.“The Canadian economy managed a soft landing. Unfortunately, we’re not going to stay on the tarmac for long,” Macklem said.That’s largely because of sweeping tariffs imposed by the United States earlier this month, as well as the Canadian response to impose import taxes on billions of dollars in U.S. goods.“The damage caused by tariff uncertainty has started on both sides of the border…