Macklem Says Bank Capital Rule Change Alone Won’t Spark Lending

Bank of Canada Governor Tiff Macklem has emphasized that modifying bank capital rules by themselves won't drive up lending or economic activity. This viewpoint aligns with analysts who doubt that the recent regulatory adjustment will automatically lead to increased borrowing unless there's a demand from borrowers. Macklem's comments highlight the complexity of economic dynamics, stressing that regulatory changes must be part of a broader strategy to effectively stimulate lending and economic growth.