Key facts
- Macklem said the bank comments on government policy only if it is unsustainable or impedes the return to the 2% target.
- Macklem said neither criterion was met in the current circumstances.
- Macklem reiterated that more interest rate hikes might be needed.
Bank of Canada Governor Tiff Macklem told the House of Commons finance committee on November 3 that the Canadian government's current fiscal policy is not making it harder for the central bank to fight inflation.
Macklem said the bank would only comment on government policy if it had become unsustainable or if it was making it harder to get inflation back to the bank's 2% target. "In the current circumstances, I don't think either of those criteria are met," he said.
He reiterated that more interest rate hikes might be needed.