Canada could be ‘sideswiped’ if global imbalances continue to widen, Bank of Canada’s Tiff Macklem warns (opens original article in a new tab)

Bank of Canada Governor Tiff Macklem warned that growing global economic imbalances could threaten financial stability, urging coordinated international efforts to address domestic issues in China, the U.S., and the EU.

• Bank of Canada Governor Tiff Macklem warned that widening global trade and financial imbalances could pose risks to financial stability.
• He highlighted two main risks: misallocated capital inflows into the U.S. and sudden reversals of those flows affecting global markets.
• Macklem emphasized the need for coordinated adjustments in domestic imbalances among countries like China, the U.S., and the EU to prevent global financial shocks.