Fiscal and monetary policy are not at odds, Bank of Canada’s Macklem tells MPs

Advertisement

Advertise with us

OTTAWA - Bank of Canada governor Tiff Macklem told members of Parliament on Tuesday he doesn't think the federal government's fiscal policy is at odds with the central bank's efforts to control inflation.

Read this article for free:


By clicking the button above, an account will be created and you will begin to receive some of our recommended newsletters. You may opt out of any newsletter by visiting your Email and Communication Preferences page or by clicking "unsubscribe" at the bottom of any email.

or

Already have an account? Log in here »

We need your support!
Local journalism needs your support!

As we navigate through unprecedented times, our journalists are working harder than ever to bring you the latest local updates to keep you safe and informed.

Now, more than ever, we need your support.

Starting at $15.99 plus taxes every four weeks you can access your Brandon Sun online and full access to all content as it appears on our website.

Subscribe Now

or call circulation directly at (204) 727-0527.

Your pledge helps to ensure we provide the news that matters most to your community!

To continue reading, please subscribe:

Add Brandon Sun access to your Free Press subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on brandonsun.com
  • Read the Brandon Sun E-Edition, our digital replica newspaper
Start now

*Your next Free Press subscription payment will increase by $1.00 and you will be charged $20.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

OTTAWA – Bank of Canada governor Tiff Macklem told members of Parliament on Tuesday he doesn’t think the federal government’s fiscal policy is at odds with the central bank’s efforts to control inflation.

Macklem was speaking at the House of Commons finance committee two days before the Liberal government plans to table its 2026 federal budget.

Conservative finance critic Michael Chong asked Macklem for his opinion on the government’s affordability efforts. The central bank governor declined to answer directly.

Bank of Canada governor Tiff Macklem speaks during a news conference in Ottawa on Wednesday, Oct. 28, 2026. THE CANADIAN PRESS/Adrian Wyld
Bank of Canada governor Tiff Macklem speaks during a news conference in Ottawa on Wednesday, Oct. 28, 2026. THE CANADIAN PRESS/Adrian Wyld

He said he only comments on the government’s fiscal policy when spending is approaching unsustainable levels, or when the government’s actions are working against the Bank of Canada’s efforts to tame inflation.

“In the current circumstances, I don’t think either of those criteria are met,” he said.

The Bank of Canada operates independently of the federal government to steer monetary policy, primarily by setting its benchmark interest rate

The Bank of Canada increased that key rate by a quarter-point to 2.5 per cent last week, reflecting worries about inflation pressures bubbling up from the war in the Middle East.

Macklem did comment publicly on the pace of government spending three years earlier. He warned at the time that fiscal spending was adding to demand faster than it was increasing supply, which was “not helpful” for getting inflation back under control.

Governor of the Bank of Canada Tiff Macklem prepares to appear before the Standing Committee on Finance on Parliament Hill in Ottawa, on Tuesday, Nov. 3, 2026. THE CANADIAN PRESS/Justin Tang
Governor of the Bank of Canada Tiff Macklem prepares to appear before the Standing Committee on Finance on Parliament Hill in Ottawa, on Tuesday, Nov. 3, 2026. THE CANADIAN PRESS/Justin Tang

Conservative Leader Pierre Poilievre regularly rails against the Liberal government over what he calls inflationary spending. He has urged the government to slash spending ahead of Thursday’s budget to help get costs under control for Canadians.

This report by The Canadian Press was first published Nov. 3, 2026.

Report Error Submit a Tip

Business

LOAD BUSINESS ARTICLES