Bank of Canada Governor Tiff Macklem has acknowledged the need to rebuild public trust in the central bank after recent concerns over rising inflation.
In a speech to the Canadian Club of Toronto on Thursday, Macklem addressed the issue of inflation and the role of the Bank of Canada in managing it. He acknowledged that the recent increase in inflation has caused concern among Canadians and emphasized the importance of rebuilding public trust in the central bank.
Macklem stated that the Bank of Canada’s primary mandate is to maintain price stability and keep inflation within a target range of 1 to 3 percent. However, he acknowledged that the current inflation rate of 3.4 percent is above the target range and has caused uncertainty and anxiety among Canadians.
He attributed the rise in inflation to temporary factors such as supply chain disruptions and pent-up demand as the economy reopens. He also reassured Canadians that the Bank of Canada is closely monitoring the situation and will take necessary actions to keep inflation under control.
Macklem also addressed concerns about the impact of inflation on the cost of living for Canadians. He stated that the Bank of Canada is committed to keeping inflation low and stable, which ultimately benefits Canadians by maintaining the purchasing power of their money.
In addition to addressing inflation, Macklem also emphasized the importance of rebuilding public trust in the central bank. He acknowledged that recent events, such as the resignation of former Governor Stephen Poloz and the controversy surrounding the Bank’s handling of the bond market, have eroded public trust in the institution.
Macklem stated that the Bank of Canada is committed to transparency and accountability, and will continue to communicate clearly and openly with the public about its actions and decisions. He also highlighted the Bank’s efforts to increase diversity and inclusion within the institution, which he believes will help rebuild public trust.
In conclusion, Macklem acknowledged the concerns and uncertainties surrounding inflation and the need to rebuild public trust in the Bank of Canada. He reassured Canadians that the central bank is closely monitoring the situation and will take necessary actions to keep inflation under control. He also emphasized the Bank’s commitment to transparency and diversity, which he believes will help restore public trust in the institution.
