Inflation relief should be targeted and temporary, says Macklem

Government Considering Providing inflation relief Canadians must opt ​​for targeted and temporary measures, said Bank of Canada Governor Tiff Mackrem.

At a House of Commons committee meeting on Wednesday, Conservative MP Adam Chambers asked the governor which of the two options would be the better way to go. relief without refueling inflation: direct remittance to low-income Canadians or energy relief package.

In response, the governor said targeted temporary measures would fuel inflation less than broad-based ones.

“Policies aimed at mitigating impacts inflation It should be targeted to the most vulnerable and temporary and temporary. inflation It’s a problem,” said Macklem.

The federal government as well as the state governments inflation in measures aimed at softening the blow to the finances of Canadians. Some measures target low-income earners, while others are far-reaching.

The federal government recently doubled its GST rebate temporarily.

Already delivered to prefectures reliefmany are choosing to send their checks more widely.

Alberta’s Prime Minister Daniel Smith recently inflation relief This includes a payment of $600 per child for families with an annual income of less than $180,000. 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 faced questions about the central bank’s policy decisions in the face of decades of high levels. inflation.

The annual October inflation The rate was 6.9%, down from June’s peak of 8.1%.

From March The Bank of Canada has hiked rates six times in a row 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.

canadian press