🇨🇦 BoC Governor Macklem’s Warning: Why the"Economic Weakness"Isn't What You Think.
Just in:Tiff Macklem is sounding the alarm. While the market is screaming for rate cuts due to a slowing economy, the Bank of Canada is pushing back.
The core issue? Productive Capacity. Macklem argues that if the downturn is caused by a drop in production (structural) rather than just lower demand (cyclical), cutting rates too early will spark a massive inflation fire.
Why this matters for Crypto:
Sticky Inflation: If rates stay "Higher for Longer," the $DXY (Dollar Index) stays strong, putting pressure on $BTC and Risk-on assets.
Liquidity Trap: We might not see the "cheap money" pivot as early as many hoped in 2026.
Keep an eye on the CAD/USD pair. If the BoC holds while others cut, expect volatility.
👇 Do you think Macklem is being too cautious, or is he right about the inflation risk? Let’s discuss below!