Bank of Canada governor Tiff Macklem said in a London speech that trade disruptions, ranging from tariffs to war, are now the norm. As a result, bursts of inflation like the one afflicting economies since 2021 could become more frequent, complicating monetary policy. (The Logic) 

Talking point: With inflation headed back to target, Macklem has more time to think about other subjects. He used a rare speech abroad to talk about trade, specifically how the West’s rivalry with China and other factors are rewiring supply chains. Macklem called for increased investment in ports, border crossings and the like to boost underperforming goods exports, and he predicted the exports in services would become increasingly important. He also said the Bank of Canada is working hard to understand how supply shocks affect inflation, as those likely will become more important in deciding interest rates.