The Bank of Canada warns the economy remains vulnerable to shocks as global volatility rises. In its annual Financial Stability Report, Governor Tiff Macklem and Senior Deputy Governor Toni Gravelle outlined key threats: the Iran war, unresolved trade tensions with the U.S., and emerging risks from artificial intelligence.
Household debt remains high, with many Canadians lacking financial flexibility to weather a job loss or recession. The central bank also flagged AI as a double-edged sword-capable of boosting productivity but also increasing cyberattack sophistication.
Macklem and Gravelle are scheduled to address the media at 11 a.m. Eastern.