The head of the Bank of Canada says the global economy has held up well through a series of recent shocks but that resilience is being tested.
Bank of Canada governor Tiff Macklem spoke to reporters today from the sidelines of the International Monetary Fund meetings in Bangkok.
He says the global economy has been performing better than expected in the face of ongoing wars in Iran and Ukraine and sweeping trade disruptions.
But he also says that resilience is increasingly “under strain” as shocks like the Middle East conflict persist and drive up energy prices.
Macklem says there are only so many times countries can release global oil reserves before the well starts to run dry and needs to be restocked.
The Bank of Canada will get a look at how domestic prices are responding to global cost pressures when Statistics Canada releases its September inflation report on Monday.
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