(OTTAWA) Two provincial premiers have sent letters to Bank of Canada Governor Tiff Macklem urging the central bank to halt rate hikes, as it is due to announce its latest decision on the matter on Wednesday.
Ontario Premier Doug Ford sent a letter on Sunday saying families and businesses could not afford “the devastating impact of further rate hikes,” echoing a letter sent by the Premier on Thursday. British Columbia Minister David Eby.
According to Associate Professor and Founding Director of McGill University’s Max Bell School of Public Policy, Christopher Ragan, it is “unfortunate” that the Prime Ministers felt that the sending of these letters was helpful.
Ragan says this brings a political element to monetary policy decisions, which are meant to be made independently of government.
The Bank of Canada is an independent institution that receives its mandate from the federal government and is responsible for maintaining an annual inflation target of 2%.
The central bank is due to announce its most recent interest rate decision on Wednesday and most observers expect it to keep its key rate at its current level as the economy begins to show signs of weakness. under the weight of rising interest rates.