Bank of Canada (BoC) Governor Tiff Macklem said on Friday that if population growth slows faster than assumed, the headline Gross Domestic Product (GDP) will be lower.
Key quotes
Having returned to low inflation, Canada is in a better place to deal with new economic shocks.
There’s a fair amount of uncertainty on how quickly Canada’s new immigration curbs kick in, BOC will be watching.
Effect of changes in assumptions about population growth will have a bigger impact on our GDP forecast than our inflation forecast.
If population growth slows faster than assumed, headline GDP will be lower than assumed.
Market reaction
At the time of writing, USD/CAD was up 0.06% on the day at 1.3895.
Source: https://www.fxstreet.com/news/boc-macklem-if-population-growth-slows-more-than-assumed-headline-gdp-will-be-lower-202410280046