Bank of Canada Governor to testify before Senate banking committee Wednesday

Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers are set to testify before the Senate Committee on Banking, Commerce and the Economy on Wednesday afternoon in Ottawa.

The Senate appearance comes one week after the Bank of Canada held its key interest rate steady at five per cent.

It also comes days after another appearance in Ottawa where Macklem said “it would be helpful if monetary and fiscal policy was rowing in the same direction.”

In his Monday testimony before the House of Commons Finance Committee, Macklem said government spending is working against the central bank’s efforts to bring inflation down, because spending is set to grow faster than supply in the economy over the next year.

 

 

The Bank of Canada has been raising rates in a bid to bring down high inflation.

September inflation figures from Statistics Canada came in at 3.8 per cent – down from four per cent inflation in August, but still higher than the central bank’s two per cent target.

The central bank also released its October Monetary Report last week, which projected that inflation will stay around 3.5 per cent until the middle of next year and reach two per cent in 2025.

Bank of Canada officials are typically called in to testify following the release of the April and October monetary policy reports.

 

 

With files from the Canadian Press

This article was reported by BNNBloomberg