Bank of Canada’s Macklem: Fiscal Policy Won’t Make Hitting CPI Target Harder

Macklem's remark is a signal about policy coordination, not a data point: it pushes back on the idea that government spending plans are a fresh obstacle for the Bank of Canada's inflation fight. That matters most for rate-path expectations, since fiscal expansion is often cited as a reason central banks might have to lean tighter for longer. The open question is whether that assessment holds as spending plans actually roll out, and whether it changes how markets read the Bank of Canada's reaction function relative to fiscal developments.