Bank of Canada Governor Tiff Macklem waits to appear before the Senate Finance Committee, in Ottawa, Wednesday, May 1, 2024. THE CANADIAN PRESS/Adrian Wyld
GACOTTAWA - Bank of Canada governor Tiff Macklem said he doesn't think the federal budget tabled last month will have much of an effect on inflation.
Macklem was testifying at a Senate committee alongside senior deputy governor Carolyn Rogers on Wednesday following the central bank's latest interest rate announcement.
The governor said the spending plan hasn't changed the federal government's fiscal track by much, since it's offset by higher revenues.
"Since the government's net fiscal plan hasn't changed a lot, I don't think it'll have a big effect on our projections for the economy or inflation," Macklem said in French.
Finance Minister Chrystia Freeland's budget pays for new spending with higher taxes and stronger-than-expected government revenues, which kept the federal deficit in check.
Because of the higher revenues, the budget met all of the government's promised fiscal guardrails from the fall, which Macklem has applauded.
The Bank of Canada is widely expected to begin lowering its policy interest rate in June or July, as the economy loses steam and inflation eases.
Macklem has indicated that the central bank is seeing the right trends to begin lowering interest rates, but it wants to see those trends sustained before pulling the trigger.
The Bank of Canada has been holding its key interest rate at five per cent since last summer.
This report by °µÍø½ûÇø was first published May 1, 2024.
°µÍø½ûÇø. All rights reserved.
Get the latest from °µÍø½ûÇø News in your inbox. Select the emails you're interested in below.
Major League Baseball's trade deadline is July 31 at 6 p.m. ET and, with the Toron…
With temperatures in the mid-30s and humidex values in the 40s, people are seeking…
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
