The Bank of Canada is supposed to be independent, but it might not hurt if it knew what Finance was up to
Some think the Bank of Canada might be consciously enabling Prime Minister Justin Trudeau’s spending habits by purchasing billions of dollars’ worth of government debt each week with newly created money.
“We will be watching the Bank of Canada with great skepticism,” Pierre Poilievre, the Opposition finance critic, told Bloomberg News last month, adding that the central bank “should not be an ATM for Trudeau’s insatiable spending appetites.”
Those comments will have bothered a lot of people. Poilievre politicized a Crown institution that worries a great deal about its independence from the whims of partisan politics. Much of its credibility relies on the assumption that policy-makers will set interest rates based on economic conditions, not the electoral needs of their political masters.
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