“Canada is a country of peace, order and good government,” Freeland told reporters Tuesday on her way into a cabinet meeting. “Institutional stability very much includes the independence of the Bank of Canada. Our government respects very much the independence of the Bank of Canada.”
Singh also wrote to Prime Minister Justin Trudeau directly, flagging recent changes in the government’s mandate agreement with the central bank that added labor-market conditions as a secondary consideration to price stability. “Inflation is too high, life is really tough for a lot of people, and rising interest rates are posing another set of challenges,” she said. “People are worried about their mortgages.”
“We really believe it’s important to have a fiscally responsible approach right now,” the finance minister said. “We really understand the value of not pouring fuel on the flames of inflation and of not making the Bank of Canada’s very tough job even harder.”While Singh acknowledged the importance of central bank independence, his comments ratchet up pressure on both the government and Macklem.