1653 ET - A Canadian lawmaker tells Bank of Canada Gov. Tiff Macklem that interest rate increases might not be appropriate given the economic hardship from President Trump's tariffs. Macklem, at a parliamentary committee, says the BOC is prepared to look through the initial, near-term rise in inflation from higher energy prices. Macklem says BOC officials are focused on whether energy prices head higher and stay elevated. That would increase the risk of entrenched inflation. Higher rates would hurt households and small firms, Macklem says. "But the alternative is to let inflation get out of control, become entrenched. That hurts everybody even more," the BOC governor told lawmakers. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

May 04, 2026 16:54 ET (20:54 GMT)

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