Economists are increasingly of the belief that Trudeau’s government is working at cross purposes to the central bank. Nearly 70 per cent of respondents to a Bloomberg survey say generous federal spending programs and higher immigration targets have led interest rates steeper than they would have otherwise needed to go.
Instead of targeted policy to limit reduce inflation, the federal and provincial governments have left the Bank of Canada to deal with it.
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The BoCs mandate is to manage inflation, regardless of any excessive federal spending.