Bank of Canada Governor Tiff Macklem dismissed allegations of collusion with the cabinet regarding potential pre-election interest rate adjustments, says Blacklock's Reporter.His remarks came in response to questions from MPs following comments made by himself and the Prime Minister regarding a possible rate cut.Macklem addressed the Commons finance committee, stating, "No, there is no pressure. Elections are elections. Monetary policy is monetary policy."Bloc Québécois MP Gabriel Ste-Marie raised concerns about the impact of interest rates amidst speculation about the Prime Minister's actions. Macklem assured, "The answer is no. There is a very good reason why we have an independent central bank, independent from the government. It is exactly to avoid those kinds of issues."Earlier, Macklem had mentioned before the Senate banking committee that a rate cut "would be a confidence booster." Conversely, the Prime Minister had stated in the Commons, "Interest rates will be coming down I am sure in the coming months."Conservative MP Philip Lawrence questioned the timing of these statements, considering the upcoming Bank announcement on rates scheduled for June 5.Macklem reiterated the independence of the Bank's decision-making process and stated that decisions are communicated to the Minister of Finance after they are made.When pressed by MP Lawrence about the Prime Minister's statement, Macklem responded, "We haven’t taken the decision yet."The Bank last adjusted rates upward by a quarter point on July 12, 2023 to 5%.Macklem emphasized, "We know Canadians would like to see lower interest rates."
Bank of Canada Governor Tiff Macklem dismissed allegations of collusion with the cabinet regarding potential pre-election interest rate adjustments, says Blacklock's Reporter.His remarks came in response to questions from MPs following comments made by himself and the Prime Minister regarding a possible rate cut.Macklem addressed the Commons finance committee, stating, "No, there is no pressure. Elections are elections. Monetary policy is monetary policy."Bloc Québécois MP Gabriel Ste-Marie raised concerns about the impact of interest rates amidst speculation about the Prime Minister's actions. Macklem assured, "The answer is no. There is a very good reason why we have an independent central bank, independent from the government. It is exactly to avoid those kinds of issues."Earlier, Macklem had mentioned before the Senate banking committee that a rate cut "would be a confidence booster." Conversely, the Prime Minister had stated in the Commons, "Interest rates will be coming down I am sure in the coming months."Conservative MP Philip Lawrence questioned the timing of these statements, considering the upcoming Bank announcement on rates scheduled for June 5.Macklem reiterated the independence of the Bank's decision-making process and stated that decisions are communicated to the Minister of Finance after they are made.When pressed by MP Lawrence about the Prime Minister's statement, Macklem responded, "We haven’t taken the decision yet."The Bank last adjusted rates upward by a quarter point on July 12, 2023 to 5%.Macklem emphasized, "We know Canadians would like to see lower interest rates."
