The Financial Post reports in its Tuesday edition that Bank of Canada Governor Tiff Macklem says policy-makers might consider making larger 50-basis-point reductions if economic growth underperforms. A Financial Times dispatch to the Post reports that although the G7 economy expanded by an annualized rate of 2.1 per cent in the second quarter, there are growing concerns that declining oil prices, rising unemployment and reduced immigration levels could push Canada toward stagnation. Mr. Macklem expressed the BOC's mounting worries about Canada's labour market and the potential impact of lower crude oil prices on the economy. The BOC has been at the forefront of interest rate reductions, lowering rates by a quarter point in its three meetings since June, bringing borrowing costs down to 4.25 per cent from a peak of 5 per cent. With inflation currently at 2.5 per cent, nearing the bank's 2-per-cent target, Mr. Macklem stated in London last week that there was now leeway to accelerate the pace of rate cuts. He mentioned: "As you get closer to the (inflation) target, your risk management calculus changes. You become more concerned about the downside risks. And the labour market is pointing to some downside risks."