Canadian dollar's decline not yet impacting economic decisions, says Macklem

The Canadian dollar has depreciated due to trade uncertainty, but this has not significantly constrained economic decisions so far. Officials acknowledge that the depreciation may start to have some impacts. The possibility of using quantitative easing remains low, with a high threshold for action. A severe recession scenario involving tariffs is acknowledged, but the focus is on real-time decision-making as developments occur. There is speculation that the Bank of Canada may pause interest rate changes if tariffs do not materialize, as indicated in recent statements. However, the potential impacts of tariffs remain unpredictable.