FES creates a “clearer path” for Macklem

It would be a stretch to say the government showed fiscal restraint in the Fall Economic Statement, but the announcement of only a few billion dollars in extra spending measures means that Finance Minister Chrystia Freeland did not pour much more fuel on the inflation fire. That will make the Bank of Canada’s job a little easier. Comments from Governor Tiff Macklem this week seem consistent with our view that there is scope for the Bank to cut interest rates next April.