ontario news watch

Inflation relief measures should be well-targeted and temporary, says Macklem

OTTAWA — Bank of Canada governor Tiff Macklem says governments looking to provide inflation relief to Canadians should choose measures that are well-targeted and temporary. 

At a House of Commons committee meeting Wednesday, Conservative MP Adam Chambers asked the governor which of two options is a better way to deliver relief without fuelling inflation: direct transfers to low-income Canadians or energy relief packages.

In response, the governor said targeted and temporary measures fuel inflation less than broad-based ones. 

Macklem, along with senior deputy governor Carolyn Rogers, answered questions from MPs at the House of Commons standing committee on finance.

The Bank of Canada officials faced questions about the central bank’s policy decisions in the face of decades-high inflation.

The Bank of Canada has raised interest rates six consecutive times this year and is expected to announce another rate hike in December. 

This report by The Canadian Press was first published Nov. 23, 2022. 

The Canadian Press