Pierre Poiliver says the Bank of Canada printed a lot of money

(OTTAWA) Conservative Leader Pierre Poilievre said his pick for BoC governor would be someone focused entirely on keeping inflation at its 2% annual target.

The leader of the official opposition made the remarks on Friday as he reiterated his pledge during the leadership campaign to sack current central bank governor Tiff Macklem if he becomes prime minister.

“He will be replaced by someone with experience in central banking and whose sole aim is to keep inflation at the 2% target, while protecting financial stability,” Poiliver said at an end-of-year news conference on Parliament Hill. “I think it’s reasonable to ask.”

Mr Poiliver added that, to help bring down inflation, the Conservative government would reduce program and deficit spending, so that higher interest rates would no longer have to be charged. But he will leave it to the central bank, completely independently, to set monetary policy for Canada.

The correct policy – and one that I will implement – is to reduce the deficit and, in so doing, reduce inflation. Currently, the cost of living is increased by the government.

Pierre Poilievre, Leader of the Conservative Party of Canada

Appointed in June 2020 to a seven-year term as President of the Bank of Canada, Tiff Macklem has become a key target for Mr Poilievre, first during the Conservative Party leadership race, and then today in his bid to become Prime Minister.

“print money”

Canadians spent most of the year grappling with the highest levels of inflation seen in nearly 40 years, with the rising cost of living tied to more expensive groceries and other goods for consumers.

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Experts blamed many factors, including global events like Russia’s invasion of Ukraine and supply chain disruptions.

But the focus has been increasingly on domestic factors, including fiscal and monetary stimulus during the pandemic.

The federal government has responded to the COVID-19 pandemic with several support programs, which have provided billions of dollars to individuals and businesses to mitigate the financial losses caused by the shutdowns.

The Bank of Canada has also injected stimulus into the economy by cutting interest rates to near zero and buying government bonds to lower interest rates further and encourage consumer spending, a strategy followed by other central banks around the world. The central bank now realizes that these measures may have been excessive.

Mr. Poiliver said his disagreement with Mr. McCallem had nothing to do with the Bank of Canada’s monetary policy portfolio, which aims to set interest rates to help control inflation.

Instead, he argued, McClim had deviated from fiscal policy by “printing money” to buy government bonds, which he described as supporting liberal spending during the pandemic.

He is supposed to be in charge of monetary policy, not fiscal policy. And he printed money to finance this deficit, and he did so in an inflationary environment. That is why I think it should be replaced.

Pierre Poilievre, Leader of the Conservative Party of Canada

Poiliver also blamed the central bank governor for promising in July 2020 that interest rates would stay “low for a long time”. According to the Conservative Party leader, this announcement has led many Canadians to take out large mortgages, which they no longer have the means to pay.

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The Bank of Canada has raised interest rates seven times this year in an effort to rein in soaring inflation. The central bank’s benchmark interest rate is currently 4.25%; It was 0.25% in July 2020.

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