Bank of Canada deputy Macklem says economic momentum softer than anticipated

KINGSTON, Ont. – Bank of Canada senior deputy governor Tiff Macklem says the economy is expected to pick up this year, but sounded a note of caution.

Macklem says “near-term momentum now appears to be slightly softer than previously anticipated.”

The central bank’s second-in-command made the comments in a speech at Queen’s University in Kingston, Ont.

He said exports are expected to help growth as the housing sector softens, but noted that foreign demand has remained weak.

The Bank of Canada is expected to update its economic projections later this month when it makes its next interest rate decision on Jan. 23.

Macklem is considered by many to be the front-runner to replace Bank of Canada governor Mark Carney, who is leaving later this year to head the Bank of England.