(Reuters) -Bank of Canada Governor Tiff Macklem has opened the door to stepping up the pace of rate of interest cuts, the Financial Times reported on Sunday.

Macklem told the newspaper in an interview that rate-setters are concerned about Canada’s labor market and the potential for lower oil prices hitting the economy.

“As you catch up with to the [inflation] goal, your risk management calculus changes,” Macklem told the newspaper. “You grow to be more concerned concerning the downside risks. And the labor market is pointing to some downside risks.”

The BoC, after keeping its key policy rate at 5%, a greater than two-decade high, for a yr, has trimmed it by 1 / 4 point thrice in a row since June, bringing it down by 75 basis points to 4.25% earlier this month.

Overall inflation in Canada in July fell to a 40-month low of two.5%.

Macklem said last week that while the bank saw growth strengthening, there have been some downside risks to the expected pick-up.

“Trade disruptions may mean larger deviations of inflation from the two% goal,” he said in a speech to the Canada-UK Chamber of Commerce in London.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Edmund Klamann and Susan Fenton)