Macklem said measures to ease inflation should be targeted and temporary

Governments seeking to provide inflation relief to Canadians will need to opt for targeted and temporary measures, Bank of Canada Governor Tiff Macklem said.

At a House committee on Wednesday, Conservative MP Adam Chambers said that of two options — direct remittances to low-income Canadians and an energy relief package — the better option would be to provide relief without accelerating inflation. I asked the governor which one would be a better way.

In response, the governor said targeted temporary measures would not encourage inflation any more than broader ones.

“Policies aimed at mitigating the impact of inflation on citizens need to be truly targeted, targeted at the most vulnerable, temporary, transitory, but this It’s a matter of,” said Macklem.

The federal government, along with provincial governments, has responded to high inflation with measures aimed at softening the financial blow to Canadians. Some measures target low-income earners, while others are far-reaching.

The federal government recently doubled its GST rebate temporarily.

States are also taking remedies, with many opting to send checks more broadly.

Alberta’s Prime Minister Daniel Smith recently announced a number of measures to ease inflation, including $600 per child for families earning less than $180,000 a year. The same income standards and benefits apply to older people.

Macklem, along with Senior Lieutenant Governor Carolyn Rogers, answered questions from lawmakers before the House Standing Committee on Finance.

Officials at the Bank of Canada questioned the central bank’s policy decisions in the face of decades of high inflation.

Annual inflation was 6.9% in October, down from a peak of 8.1% in June.

The Bank of Canada has hiked rates six times in a row since March and is expected to announce another hike in December.

The central bank aims to cool spending in the economy by raising borrowing costs for Canadians and businesses.

A significant economic slowdown is expected to be imminent as rising interest rates are having an impact on the economy. But many economists are cautiously optimistic that even if Canada enters a recession, it will be short-lived.

—Nojoud Al Mallees, The Canadian Press

inflation