BOC Macklem: If population grows slows more than assumed, headline GDP will be lower

• 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 that our inflation forecast
• If population growth slows faster than assumed, headline GDP will be lower than assumed

The Canadian government announced 20% lower immigration targets yesterday.

This article was written by Adam Button at www.forexlive.com.